Group 1 - The event "All Sports in Flower City, Jinjiang Accompanies You" was launched on November 2 in Guangzhou, aimed at welcoming the 15th National Games and the Special Olympics [1] - Jinjiang Hotels (China) collaborates with well-known brands like "Guangzhou Gifts" and Pepsi to create new urban experiences through multi-industry consumption scenarios [1][2] - The offline activities include a themed "Sports Energy Station" flash event featuring interactive installations such as "Energy Charging Station" and "Fun Rowing Challenge" to engage citizens with the National Games [1][3] Group 2 - The flash activities will also link with the 2025 Guangzhou International Light Festival and the 2025 Guangzhou Garden Expo, transforming the space into a "charging station" for urban energy and showcasing the dual charm of "sports + culture" [2] - An online interactive experience called "All Sports in Flower City, Jinjiang Accompanies You" was developed, featuring a parkour game that integrates elements of the National Games, allowing players to collect energy and win rewards [2] - Jinjiang Hotels (China) aims to extend the concept of hotels beyond mere accommodation to become cultural carriers and stations of the spirit of the National Games, connecting event sites, landmarks, and cultural spaces [3]

Core Insights - The hotel and catering sector experienced a 1.0% increase on November 3, with *ST Yunwang leading the gains [1] - The Shanghai Composite Index closed at 3976.52, up 0.55%, while the Shenzhen Component Index closed at 13404.06, up 0.19% [1] Sector Performance - The following table summarizes the performance of key stocks in the hotel and catering sector: | Code | Name | Closing Price | Change (%) | Volume (10,000) | Turnover (Million) | |--------|--------------|---------------|------------|------------------|---------------------| | 002306 | *ST Yunwang | 1.93 | 3.21% | 45.20 | 87.83 | | 600754 | Jinjiang Hotel| 23.06 | 2.44% | 18.16 | 414.00 | | 000721 | Xi'an Catering| 8.75 | 1.86% | 13.84 | 120.00 | | 000428 | Huaten Hotel | 3.31 | 1.53% | 20.52 | 67.77 | | 002186 | Quanjude | 11.60 | 0.78% | 4.96 | 57.26 | | 301073 | Junxi Hotel | 21.61 | 0.56% | 2.90 | 62.48 | | 601007 | Jinling Hotel | 7.45 | -0.13% | 7.33 | 54.66 | | 600258 | Shoulv Hotel | 14.46 | -0.48% | 9.53 | 138.00 | | 605108 | Tongqinglou | 18.78 | -0.69% | 1.88 | 35.35 | [1] Capital Flow - The hotel and catering sector saw a net inflow of 5.90 million yuan from main funds, while retail investors experienced a net outflow of 55.97 million yuan [1] - The following table details the capital flow for key stocks: | Code | Name | Main Net Inflow (Million) | Main Net Ratio (%) | Speculative Net Inflow (Million) | Speculative Net Ratio (%) | Retail Net Inflow (Million) | Retail Net Ratio (%) | |--------|--------------|---------------------------|---------------------|----------------------------------|---------------------------|-----------------------------|-----------------------| | 600754 | Jinjiang Hotel| 15.99 | 4.85 | 1.53 | 0.46 | -17.51 | -5.31 | | 600258 | Shoulv Hotel | 6.32 | 5.53 | 4.25 | 3.72 | -10.57 | -9.25 | | 002306 | *ST Yunwang | 4.97 | 6.44 | -0.49 | -0.63 | -4.48 | -5.81 | | 000721 | Xi'an Catering | 1.28 | 1.75 | 0.28 | 0.38 | -1.56 | -2.13 | | 002186 | Quanjude | -1.83 | -3.74 | -0.20 | -0.42 | 2.03 | 4.16 | | 301073 | Junxi Hotel | -2.41 | -4.62 | -1.75 | -3.35 | 4.16 | 7.97 | | 605108 | Tongqinglou | -4.92 | -16.21 | -1.22 | -4.01 | 6.13 | 20.22 | | 000428 | Huaten Hotel | -5.30 | -9.07 | -1.37 | -2.35 | 6.67 | 11.42 | | 601007 | Jinling Hotel | -8.20 | -18.79 | -1.33 | -3.05 | 9.53 | 21.84 | [2]

Investment Rating - The investment rating for the company is "Accumulate" with a target price of 30.35 CNY [5]. Core Insights - The company's performance met expectations, with high growth in the current quarter attributed to a low base from the previous year. Direct operations have shown improvement in both data and profits, although overseas losses still need to be addressed [2][11]. Financial Summary - Total revenue for 2023 is projected at 14,649 million CNY, with a year-on-year increase of 29.5%. However, a decline of 4.0% is expected in 2024, followed by further declines in 2025 and 2026 [4]. - Net profit attributable to the parent company is expected to be 1,002 million CNY in 2023, reflecting a significant increase of 691.1% year-on-year, but a decrease of 9.1% is anticipated in 2024 [4]. - Earnings per share (EPS) for 2025 is estimated at 0.86 CNY, with a gradual increase to 1.16 CNY by 2027 [4]. Operational Performance - In Q3 2025, the company achieved revenue of 3,715 million CNY, a year-on-year decrease of 4.71%, while the net profit attributable to the parent company was 375 million CNY, showing a year-on-year increase of 45.45% [11]. - The overall RevPAR (Revenue per Available Room) decreased by 1.99% year-on-year in Q3 2025, but the decline was less severe compared to Q2 [11]. - The company opened 343 new stores and closed 131, resulting in a net increase of 212 stores in the quarter [11]. Market Position - The company is positioned as an industry leader with significant potential for performance improvement, particularly in direct operations and overseas loss reduction [11]. - The financial outlook suggests that the company will benefit from operational efficiency improvements and a recovery in market expectations, which may positively impact its valuation [11].

Investment Rating - The report maintains a "Buy" rating for the consumer services industry, emphasizing the potential for growth driven by government policies aimed at boosting consumption [1]. Core Insights - The report highlights the importance of the "14th Five-Year Plan" which aims to significantly enhance consumer spending through various measures, including increasing public service expenditure and improving consumer rights protection [4]. - It suggests that the current transformation in China's service consumption sector presents a prime investment opportunity, particularly in service consumption platforms, hotel groups with improving margins, and the tourism sector [4]. Industry Overview - The consumer services sector consists of 55 listed companies with a total market capitalization of approximately 498.8 billion yuan and a circulating market value of about 457.1 billion yuan [1]. - The sector's performance over the past month shows a decline of 7.7%, while the 12-month performance indicates a growth of 9.2% [2]. Market Performance - The consumer services industry experienced a weekly increase of 0.45%, outperforming the overall A-share market which rose by 0.39% [7]. - Notable stocks in the sector include Dalian Shengya, Chuangye Heima, and Fangzhi Technology, which showed significant gains [4]. Key Announcements - Major announcements include Meituan's issuance of $2 billion in senior bonds with a subscription rate exceeding 5.7 times, and Guangzhou Restaurant's third-quarter revenue of 2.293 billion yuan, reflecting a year-on-year growth of 4.66% [31][32]. Upcoming Events - Several companies in the sector are scheduled to hold shareholder meetings in November, including Guangzhou Restaurant and Yunnan Tourism, which may provide further insights into their operational strategies and financial performance [35][36]. Industry News - Recent developments include the collaboration between Mixue Ice City and Hainan Airlines to launch a co-branded flight, and the introduction of pet-friendly travel products by Zhongxin Tourism, indicating innovation in service offerings [37][38].

Group 1 - The core viewpoint of the report is that Guosen Securities has given Jinjiang Hotels (600754.SH, latest price: 22.78 CNY) an "outperform" rating based on several factors [1] - Q3 revenue experienced a slight decline, but profit showed high growth due to a low base [1] - In Q3, the domestic RevPAR (Revenue per Available Room) decline narrowed, with direct-operated stores stabilizing, while overseas performance continued to be under pressure [1] - The company achieved 78% of its store opening target by the end of the quarter, with domestic store growth slightly outpacing industry growth [1] - The domestic supply-demand rebalancing, combined with the company's own integration effects, suggests that the RevPAR trend is expected to gradually stabilize [1] - Attention is drawn to the pace of the company's potential listing in Hong Kong and the progress of subsequent asset optimization [1]

Core Viewpoint - Jin Jiang Hotels' stock price has shown fluctuations, with a recent increase of 2.31% and a year-to-date decline of 13.03%, indicating potential volatility in the market [1] Group 1: Stock Performance - As of November 3, Jin Jiang Hotels' stock price reached 23.03 CNY per share, with a trading volume of 2.22 billion CNY and a market capitalization of 245.57 billion CNY [1] - The stock has experienced a net inflow of 11.17 million CNY from major funds, with significant buying activity from large orders [1] - Over the past five trading days, the stock has increased by 3.74%, while it has decreased by 0.86% over the last 20 days [1] Group 2: Financial Performance - For the period from January to September 2025, Jin Jiang Hotels reported a revenue of 10.241 billion CNY, a year-on-year decrease of 5.09%, and a net profit attributable to shareholders of 746 million CNY, down 32.52% year-on-year [2] - The company has distributed a total of 6.356 billion CNY in dividends since its A-share listing, with 1.132 billion CNY distributed in the last three years [3] Group 3: Shareholder Information - As of September 30, 2025, the number of shareholders for Jin Jiang Hotels increased to 82,800, with an average of 14,286 shares per shareholder, a decrease of 2.87% from the previous period [2] - The largest shareholders include Hong Kong Central Clearing Limited and various ETFs, with notable changes in their holdings [3]

Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company reported a revenue of 10.241 billion yuan for the first three quarters of 2025, a year-on-year decrease of 5.1%, while the net profit attributable to the parent company was 746 million yuan, down 32.5% year-on-year. However, the net profit excluding non-recurring items increased by 31.4% to 840 million yuan [4] - In Q3 2025, the company achieved a revenue of 3.715 billion yuan, a decrease of 4.7% year-on-year, but the net profit attributable to the parent company rose by 45.5% to 375 million yuan, and the net profit excluding non-recurring items increased by 72.2% to 431 million yuan [4][5] - The decline in RevPAR (Revenue per Available Room) for domestic limited-service hotels narrowed to 2.0% in Q3 2025, compared to 5.0% in Q2 and 5.31% in Q1, indicating a continuous recovery trend [5] - The company has a five-year capital expenditure plan totaling 480 million euros for overseas hotel renovations and digital upgrades, which is expected to improve long-term operational performance [6] Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported a revenue of 10.241 billion yuan, down 5.1% year-on-year, and a net profit of 746 million yuan, down 32.5% year-on-year. The net profit excluding non-recurring items was 840 million yuan, up 31.4% [4] - In Q3 2025, the company achieved a revenue of 3.715 billion yuan, down 4.7% year-on-year, with a net profit of 375 million yuan, up 45.5% year-on-year [4] RevPAR and Hotel Performance - The RevPAR for domestic limited-service hotels in Q3 2025 was 170.94 yuan, down 2.0% year-on-year, showing improvement from previous quarters [5] - The average room rate for limited-service hotels increased by 3.1% year-on-year, while the average occupancy rate decreased by 3.6 percentage points [5] Cost Management and Profitability - The company's gross margin in Q3 2025 was 41.7%, down 2.6 percentage points year-on-year, while the net profit margin reached 10.1%, up 3.5 percentage points year-on-year [6] - The company has effectively controlled expenses, with a decrease in selling, administrative, and financial expense ratios [6] Expansion and Future Outlook - The company opened 343 new hotels in Q3 2025, with a net increase of 212 hotels, moving towards its goal of adding 1,300 new hotels in 2025 [7] - The report projects a downward adjustment in net profit forecasts for 2025-2027, with expected net profits of 841 million yuan, 1.132 billion yuan, and 1.357 billion yuan respectively [7][8]

Macro Overview - 2025 is characterized as a turning point for China's macroeconomic landscape, with expectations for a brighter macroeconomic outlook in 2026 [2] - The U.S. economy is experiencing a dual-speed growth pattern, with rapid expansion in AI-related investments and slightly below-trend growth in traditional sectors [2][3] Investment Strategy - The profit cycle is expected to rebound due to approaching turning points in capacity and inventory cycles, with positive signals from the real estate cycle and overseas expansion [3] - Relative valuations in the Chinese market still have room for improvement, making Chinese assets attractive [3] - The market style is anticipated to rebalance rather than switch, focusing on seven key investment themes including policy, technology, real estate, and capital market reforms [3][4] Fixed Income Market - The global investment landscape is expected to see a shift with a focus on domestic demand and technology, leading to a potential recovery in nominal GDP growth [6] - The bond market is likely to exhibit characteristics of low interest rates and high volatility, with a projected yield range for ten-year government bonds between 2.0% and 2.1% [6] Equity Market Insights - The insurance sector is shifting towards dividend insurance products, with positive sales trends expected to continue into 2026 [8] - The securities market is undergoing a transformation, with low interest rates enhancing the attractiveness of equity assets and sustainable inflows of new capital [9] Company-Specific Analysis - Xinquan Co., Ltd. reported Q3 revenue of 3.954 billion yuan, a year-on-year increase of 14.91%, but net profit decreased by 27.10% due to competitive pressures [10] - Jifeng Co., Ltd. achieved Q3 revenue of 5.608 billion yuan, with a net profit increase of 116.62% year-on-year, indicating strong order backlog and production ramp-up [11] - Guobo Electronics reported Q3 revenue of 498 million yuan, with a focus on mobile terminal expansion and military product recovery [12] - Icewheel Environment's Q3 revenue grew by 6.88% year-on-year, supported by recovery in commercial cold chain and new applications in data centers [13] - Changfei Optical Fiber's Q3 revenue increased by 16.27% year-on-year, driven by AI data communication demand [14] Sector Performance - The traditional energy sector, represented by Gansu Energy, showed a revenue increase of 1.33% year-on-year in Q3, benefiting from strong profitability in hydropower [26] - The pump manufacturing sector, led by Southern Pump, is expanding into new applications such as liquid cooling and data centers, with Q3 revenue showing a slight decline but net profit growth [27]

Core Viewpoint - The economic hotel sector in China is facing significant challenges, with many brands, including budget hotels like Pod Inn, being forced to exit the market due to financial difficulties and declining performance metrics such as RevPAR (Revenue per Available Room) [5][6]. Group 1: Economic Hotel Sector Challenges - Pod Inn was delisted due to three consecutive years of negative net assets, highlighting the financial strain on budget hotels [5]. - The average room rate for budget hotels has decreased, with major players like Jinjiang, Shoulv, and Huazhu adding fewer budget hotels compared to mid-range and high-end options [5][6]. - The occupancy rates for mid-range hotels have surpassed those of budget hotels, indicating a shift in consumer preference towards higher-quality accommodations [5][6][26]. Group 2: Business Model Vulnerabilities - The business model of budget hotels is inherently fragile due to low pricing power and high reliance on occupancy rates for revenue [7][8]. - Budget hotels typically offer limited services, which restrict their ability to increase prices compared to mid-range hotels that provide additional amenities [7][8]. - The economic downturn has exacerbated the challenges faced by budget hotels, leading to a slower recovery compared to mid-range brands like Atour, which reported significant revenue growth [8][10]. Group 3: Market Dynamics and Trends - The hotel industry has seen a consolidation trend, with major chains increasing their market share and focusing on mid-range and high-end hotel segments [10][20]. - The chain hotel model has proven more resilient, with membership systems contributing significantly to revenue stability [17][20]. - The overall hotel supply remains high, particularly in the budget segment, leading to intensified competition and reduced profitability for budget hotels [29][32]. Group 4: Future Outlook - The shift towards mid-range hotels is expected to continue, driven by consumer preferences and the increasing market power of established hotel chains [31][34]. - The economic hotel segment may struggle to recover fully, as evidenced by declining demand and stagnant revenue growth despite increased marketing expenditures [32][34]. - Industry experts predict that mid-range hotels will dominate the market in the coming years, reshaping the competitive landscape of the hotel industry in China [34].

Core Viewpoint - The hotel and catering sector experienced a rise of 2.22% on October 31, with Jinjiang Hotels leading the gains, while the overall stock market indices saw declines [1] Market Performance - The Shanghai Composite Index closed at 3954.79, down 0.81% - The Shenzhen Component Index closed at 13378.21, down 1.14% [1] Individual Stock Performance - Jinjiang Hotels (600754) closed at 22.51, up 3.35% with a trading volume of 179,900 shares and a turnover of 404 million yuan - Junting Hotels (301073) closed at 21.49, up 3.32% with a trading volume of 46,000 shares and a turnover of 98.1 million yuan - Huatian Hotels (000428) closed at 3.26, up 2.19% with a trading volume of 234,300 shares and a turnover of 76.1 million yuan - Other notable performances include Xi'an Catering (000721) up 1.78%, Quanjude (002186) up 1.77%, and Shoulv Hotels (600258) up 1.61% [1] Capital Flow Analysis - The hotel and catering sector saw a net outflow of 7.72 million yuan from institutional investors and 53.78 million yuan from speculative funds, while retail investors contributed a net inflow of 61.49 million yuan [1] - Detailed capital flow for key stocks shows Jinjiang Hotels with a net inflow of 4.45 million yuan from institutional investors, while Junting Hotels had a net outflow of 6.47 million yuan [2]