Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [1]. Core Insights - The company has raised its revenue guidance and shareholder returns, reflecting strong growth prospects and operational performance [7]. - The retail business has shown significant growth, leading to an upward revision of the annual revenue growth forecast from 25% to a range of 25% to 30% [7]. - The company aims to open 500 new stores in 2025, supporting its expansion strategy [7]. - The earnings forecast has been adjusted upwards, with projected net profits for 2025-2027 being 1.63 billion, 2.03 billion, and 2.46 billion RMB respectively [7]. Financial Performance Summary - Total revenue for 2023 is projected at 4.67 billion RMB, with a year-on-year growth of 106.19% [1]. - Net profit for 2023 is expected to be 737.14 million RMB, reflecting a substantial year-on-year increase of 651.42% [1]. - The company’s earnings per share (EPS) for 2023 is estimated at 1.78 RMB, with a projected P/E ratio of 43.78 [1]. - The company’s overall occupancy rate (OCC) for Q1 was 70.2%, with an average daily rate (ADR) of 418 RMB [7]. - The gross merchandise volume (GMV) for the retail business in Q1 reached 845 million RMB, showing a year-on-year increase of 70.9% [7].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its stock performance in the near term [1]. Core Insights - The company has raised its revenue guidance for 2025, expecting a year-on-year growth of 25% to 30%, up from the previous estimate of 25% [7]. - The retail business has shown significant growth, with a gross merchandise volume (GMV) of 845 million yuan in Q1, representing a year-on-year increase of 70.9% [7]. - The company plans to maintain its target of opening 500 new stores in 2025, with a total of 1,727 hotels as of the end of Q1, reflecting a 33% year-on-year increase [7]. - The adjusted net profit forecasts for 2025-2027 have been raised to 1.63 billion, 2.03 billion, and 2.46 billion yuan respectively, with corresponding P/E ratios of 20, 16, and 13 [7]. Financial Summary - Total revenue for 2023 is projected at 4.67 billion yuan, with a year-on-year growth of 106.19% [1]. - The net profit attributable to shareholders for 2023 is expected to be 737.14 million yuan, showing a substantial increase of 651.42% year-on-year [1]. - The earnings per share (EPS) for 2023 is estimated at 1.78 yuan, with a P/E ratio of 43.78 [1]. - The company’s total assets are projected to reach 9.66 billion yuan by 2025, with a total liability of 5.18 billion yuan [8].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [6][13]. Core Views - The company reported Q1 2025 revenue of 1.91 billion yuan, a year-on-year increase of 29.8%, while net profit decreased by 5.6% to 244 million yuan. Adjusted net profit rose by 32.3% to 345 million yuan, and adjusted EBITDA increased by 33.8% to 474 million yuan [2]. - The report highlights a widening decline in Q1 RevPAR, with expectations for improvement in Q2 and Q3 due to a favorable base effect. Q1 RevPAR was 304 yuan, down 7.2% year-on-year [3]. - The retail business continues to outperform expectations, with Q1 GMV reaching 850 million yuan, a 71% increase, and retail revenue of 690 million yuan, up 66.5%, accounting for 36.4% of total revenue [3]. - The company is focusing on asset-light hotel operations and improving retail gross margins, with Q1 hotel revenue up 23.5% year-on-year despite RevPAR decline, driven mainly by new openings [4]. - A new share repurchase plan of up to 400 million USD over three years has been announced, enhancing shareholder returns [5]. Summary by Sections Financial Performance - Q1 2025 revenue was 1.91 billion yuan, up 29.8% year-on-year, while net profit was 244 million yuan, down 5.6%. Adjusted net profit was 345 million yuan, up 32.3%, and adjusted EBITDA was 474 million yuan, up 33.8% [2]. - The company expects adjusted net profit for 2025 to be 1.66 billion yuan, with projected growth rates of 20.9% and 26.4% for 2026 and 2027, respectively [6]. Operational Highlights - Q1 RevPAR was 304 yuan, down 7.2% year-on-year, with occupancy at 70.2% and ADR at 418 yuan, reflecting increased pressure on occupancy rates [3]. - The company opened 121 new hotels in Q1, bringing the total to 1,727, a 32.6% increase year-on-year, with a pipeline of 755 hotels [4]. Retail Business - Retail revenue in Q1 was 690 million yuan, a 66.5% increase, with the retail business contributing 36.4% to total revenue. The company launched new products that achieved strong sales [3][4]. Shareholder Returns - The company announced a share repurchase plan of up to 400 million USD over three years, alongside a dividend plan, indicating a commitment to enhancing shareholder returns [5].

Investment Rating - The report maintains an "Outperform" rating for the company [5][4][16] Core Views - The company demonstrates strong operational momentum despite industry headwinds, with a revenue growth of 30% in Q1 2025 and an adjusted net profit increase of 32.3% [9][4] - The retail business shows robust growth, leading to an upward revision of the annual revenue guidance to a 25%-30% increase [14][4] - The company is expected to achieve a compound annual growth rate (CAGR) of 25% in profits over the next three years, supported by strong cash flow and capital market returns [16][4] Summary by Sections Financial Performance - In Q1 2025, the company reported revenues of 1.906 billion yuan, a year-on-year increase of 29.8%, and an adjusted EBITDA of 474 million yuan, up 33.8% [9][4] - The adjusted net profit for the same period was 345 million yuan, reflecting a 32.3% increase [9][4] Hotel Business - Hotel revenue reached 1.161 billion yuan in Q1 2025, growing by 15.6%, with franchise income contributing significantly due to a 33% increase in hotel numbers [13][4] - The gross margin for the hotel business improved from 34.1% in the previous year to 36.6% [13][4] - The company opened 121 new hotels and closed 13, resulting in a net increase of 108 hotels, totaling 1,727 operational hotels by the end of Q1 2025 [13][4] Retail Business - The retail segment achieved a GMV of 845 million yuan, a year-on-year increase of 70.9%, with online channels accounting for over 90% of sales [14][4] - Retail revenue was 694 million yuan, up 66.5%, representing 36% of total revenue [14][4] - The company has raised its full-year retail revenue growth forecast to 50% due to strong performance [14][4] Capital Market Returns - The company plans to maintain a dividend policy of distributing at least 50% of the previous fiscal year's net profit, with an initial dividend distribution of approximately 58 million USD [14][4] - A stock buyback plan worth up to 400 million USD over three years has been announced, potentially providing a capital market return rate of up to 5% [14][4]

Core Viewpoint - Atour Lifestyle Holdings Limited (ATAT) reported mixed first-quarter 2025 results, with earnings missing estimates while net revenues exceeded expectations, indicating a solid performance in a challenging market environment [1][4]. Financial Performance - The company reported earnings per share (EPS) of 24 cents, missing the Zacks Consensus Estimate of 32 cents by 25%, and down from 26 cents in the prior-year quarter [4]. - Net revenues reached $263 million, surpassing the consensus mark of $259 million by 1.4%, and increased by 6.5% year over year [4]. - The Manachised hotels segment saw revenues increase by 23.5% year over year to $142 million, with the total number of hotels rising to 1,702 from 1,271 [5]. - Revenues from the Retail segment grew significantly by 66.5% year over year to $96 million, driven by effective product innovation [6]. - Total operating costs and expenses rose to $216 million from $160 million in the prior-year period, with hotel operating costs increasing to $101 million [7]. Operational Highlights - The company opened 121 new hotels during the quarter, expanding its operational portfolio to 1,727 properties [2]. - Atour Lifestyle introduced Atour 3.6 and launched Atour Light 3.3, aiming to reach 1,000 Atour Light hotels [2]. - Selling and marketing expenses increased to $39 million from $24 million, reflecting enhanced investment in brand recognition [8]. Cash Position and Outlook - As of March 31, 2025, cash and cash equivalents were $434 million, down from $496 million at the end of 2024, while total outstanding borrowings increased to $10 million from $8.5 million [9]. - The company expects net revenues to grow by 25-30% year over year in 2025 [11].

Financial Data and Key Metrics Changes - The company's net revenues for Q1 2025 grew by 29.8% year over year but fell by 8.6% quarter over quarter [28] - Adjusted net income for Q1 2025 was RMB 345 million, representing a 32.3% increase year over year [33] - Adjusted EBITDA for Q1 2025 was up by 33.8% year over year [33] - Gross margin of hotel businesses expanded to 36.6% in Q1 2025 from 34.1% in the same period of 2024 [30] - Gross margin of retail business expanded to 51.4% in Q1 2025 from 50.5% in the same period of 2024 [31] Business Line Data and Key Metrics Changes - Hotel operating costs increased by 11.2% year over year due to variable costs associated with hotel network expansion [30] - Revenues from monetized hotels were RMB 1,032 million, up by 23.5% year over year [28] - Retail business revenue reached RMB 845 million, up 70.9% year over year [17] Market Data and Key Metrics Changes - RevPAR reached RMB 304.4 in Q1 2025, representing 92.8% of its level in the same period of 2024 [7] - Occupancy rate (OCC) reached 95.8% and Average Daily Rate (ADR) stood at 97.2% compared to the same period in 2024 [8] Company Strategy and Development Direction - The company is committed to advancing the strategic initiative of establishing 2,000 premier hotels, enhancing brand awareness and product offerings [6][7] - Focus on product innovation and experiential upgrades to cater to younger consumers in the midscale segment [14][15] - The company aims to maintain a balance between quality and expansion, ensuring sustainable high-quality growth [10][47] Management's Comments on Operating Environment and Future Outlook - The management noted fluctuations in China's domestic travel market amid a complex macro environment, presenting both challenges and opportunities [6] - There is an expectation of easing RevPAR pressure in Q2 compared to Q1, but considerable uncertainty remains for the full year [40] - The company plans to adopt a more balanced revenue management strategy to build long-term brand value [41] Other Important Information - The company declared its first cash dividend in 2025 of US$0.14 per ordinary share, totaling approximately US$58 million [34] - A three-year share repurchase program was announced, allowing for repurchases of up to US$400 million [34] Q&A Session Summary Question: Performance of RevPAR since Q2 and outlook for the full year - Management indicated that RevPAR decreased by 7.2% year over year in Q1, with expectations of easing pressure in Q2, but full-year performance remains uncertain [38][40] Question: New signings momentum and hotel openings for 2025 - Management confirmed a positive signing momentum and maintained a full-year opening guidance of 500 new hotels [43][46] Question: Update on retail business revenue growth and full-year guidance - Management raised the full-year retail revenue growth forecast to 50% year over year, citing strong performance and product launches [50][52] Question: Considerations behind dividend and share buyback program - Management emphasized a commitment to long-term value creation and rewarding shareholders through dividends and share repurchases [55][57] Question: Progression of upscale brands and new product strategies - Management announced the upcoming opening of the Sahe flagship hotel and detailed strategies for the upper midscale and midscale segments [61][63]

Financial Data and Key Metrics Changes - The company's net revenues for Q1 2025 grew by 29.8% year over year but fell by 8.6% quarter over quarter [27] - Revenues from monetized hotels were RMB 1,032 million, up by 23.5% year over year but down 6.7% quarter over quarter [27] - Adjusted net income for Q1 2025 was RMB 345 million, representing a 32.3% increase year over year [33] - Adjusted EBITDA for Q1 2025 was up by 33.8% year over year [33] - Gross margin of hotel businesses expanded to 36.6% from 34.1% year over year [30] Business Line Data and Key Metrics Changes - RevPAR reached RMB 304.4 in Q1 2025, representing 92.8% of the level in the same period of 2024 [7] - The hotel network expanded with 121 new hotels opened, a 24.7% year over year increase, totaling 1,727 hotels in operation [9] - Retail business GMV reached RMB 845 million, up 70.9% year over year [17] - Revenues from the retail business were up by 66.5% year over year [29] Market Data and Key Metrics Changes - The overall market experienced volatility, affecting travel demand, with RevPAR decreasing by 7.2% year over year [38] - The retail business maintained strong growth momentum, driven by rising brand strength and customer loyalty [17] Company Strategy and Development Direction - The company is committed to advancing the strategic initiative of establishing 2,000 premier hotels, enhancing brand awareness and product offerings [7] - Focus on product innovation and experiential upgrades to cater to younger consumers in the midscale segment [14] - The company aims to maintain quality standards while expanding its hotel network [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the domestic travel market is facing fluctuations amid a complex macro environment, presenting both challenges and opportunities [6] - There is uncertainty regarding RevPAR performance for the full year, but management anticipates easing pressure in Q2 compared to Q1 [39] - The company is raising its full year retail revenue growth forecast to 50% year over year [50] Other Important Information - The company declared its first cash dividend in 2025 of US$0.14 per ordinary share, totaling approximately US$58 million [34] - A three-year share repurchase program was announced, allowing for repurchases of up to US$400 million [34] Q&A Session Summary Question: Performance of RevPAR since Q2 and outlook for the full year - Management indicated that RevPAR decreased by 7.2% year over year in Q1, with expectations of easing pressure in Q2, but considerable uncertainty remains for the full year [38][39] Question: New signings momentum and new hotel openings for 2025 - Management confirmed a positive signing momentum and maintained a full year opening guidance of 500 new hotels, aiming for 2,000 premier hotels by year-end [44][45] Question: Update on retail business revenue growth guidance - Management raised the full year retail revenue growth forecast to 50% year over year, driven by strong product performance and brand awareness [50] Question: Considerations behind dividend and share buyback program - Management emphasized a commitment to long-term value creation and rewarding shareholders through dividends and share repurchase initiatives [54][55] Question: Update on upscale brands and new product strategies - Management announced the upcoming opening of the Sahe flagship hotel and discussed strategies for the upper midscale and midscale segments, focusing on quality and diverse consumer needs [58][60]

NASDAQ: ATAT Atour Lifestyle Holdings Limited 1Q25 Results Presentation May 2025 This presentation does not constitute an offer to sell or issue or an invitation to purchase or subscribe for any securities of the Company for sale in the United States or anywhere else. No securities of the Company may be sold in the United States without registration with the United States Securities and Exchange Commission or an exemption from such registration pursuant to the Securities Act of 1933, as amended (the "Securi ...

Core Viewpoint - Atour Lifestyle Holdings Limited has declared a cash dividend and authorized a share repurchase program as part of its strategy to enhance shareholder value [1]. Dividend - The Board declared a cash dividend of US$0.14 per ordinary share, or US$0.42 per American depositary share (ADS), amounting to approximately US$58 million in total [2]. - The cash dividend will be payable on or around June 18, 2025, to holders of record as of June 2, 2025 [3]. - The Annual Dividend Policy, adopted in August 2024, stipulates that the company plans to distribute dividends amounting to no less than 50% of its net income for the preceding financial year over three years starting from 2024 [4]. Share Repurchase Program - The Board authorized a three-year Share Repurchase Program allowing the company to repurchase up to US$400 million in value of its ordinary shares and/or ADSs [5]. - Repurchases may occur on the open market, in privately negotiated transactions, or through other legally permissible means, subject to market conditions and regulatory requirements [6]. - As of March 31, 2025, the company had approximately RMB3.1 billion (US$434 million) in cash, cash equivalents, and restricted cash available for funding the repurchases [7].

Core Viewpoint - Atour Lifestyle Holdings Limited reported strong financial results for the first quarter of 2025, demonstrating significant growth in both hotel and retail segments despite market volatility. The company continues to expand its hotel network and enhance its retail offerings, aiming for sustainable, high-quality growth in the hospitality industry in China [7][9]. Financial Performance - Net revenues for Q1 2025 increased by 29.8% year-over-year to RMB1,906 million (US$263 million) [8][10]. - Net income for Q1 2025 decreased by 5.5% year-over-year to RMB244 million (US$34 million) [25]. - Adjusted net income (non-GAAP) for Q1 2025 increased by 32.3% year-over-year to RMB345 million (US$48 million) [25]. - EBITDA (non-GAAP) for Q1 2025 increased by 6.1% year-over-year to RMB372 million (US$51 million) [27]. - Adjusted EBITDA (non-GAAP) for Q1 2025 increased by 33.8% year-over-year to RMB474 million (US$65 million) [27]. Operational Highlights - As of March 31, 2025, Atour operated 1,727 hotels with a total of 194,559 hotel rooms, reflecting year-over-year increases of 32.6% in the number of hotels and 31.3% in hotel rooms [2]. - The company had 755 manachised hotels under development in its pipeline [2]. - The average daily room rate (ADR) was RMB418 for Q1 2025, a slight decrease from RMB430 in Q1 2024 [3]. - The occupancy rate was 70.2% for Q1 2025, down from 73.3% in Q1 2024 [3]. - Revenue per available room (RevPAR) was RMB304 for Q1 2025, compared to RMB328 for the same period in 2024 [3]. Retail Business Performance - Gross merchandise value (GMV) from the retail business was RMB845 million for Q1 2025, representing a year-over-year increase of 70.9% [6][9]. - Revenues from retail increased by 66.5% year-over-year to RMB694 million (US$96 million) [14]. Cost and Expense Management - Operating costs and expenses for Q1 2025 totaled RMB1,565 million (US$216 million), including RMB102 million in share-based compensation expenses [17]. - Hotel operating costs increased to RMB736 million (US$101 million) for Q1 2025, accounting for 63.4% of manachised and leased hotels' revenues [18]. - Selling and marketing expenses rose to RMB283 million (US$39 million), reflecting increased investment in brand recognition [21]. Future Outlook - For the full year of 2025, the company expects total net revenues to increase by 25% to 30% compared to 2024 [30].