2 Sep 2024 CMB International Global Markets | Equity Research | Company Update Atour Lifestyle (ATAT US) Guidance raised again plus massive dividends The hotel sector continues to be under pressure in 3Q24E and we are still cautious about a potential improvement in 4Q24E. However, Atour's retail sales business and better-than-expected sales of hotel supplies can still more than offset the drags from its hotel segment. Moreover, the new dividend payout policy is a big positive surprise and could raise its FY ...

Investment Rating - The report maintains a "Buy" rating for Atour Group (ATAT.US) and raises the target price to $24.0, indicating a potential upside of 28.3% from the current price of $18.7 [4][12]. Core Insights - Atour Group recorded revenue of RMB 1.8 billion in Q2 2024, representing a year-on-year growth of 64.5%, slightly exceeding expectations. This growth is attributed to the rapid expansion of franchise stores and retail business revenue [3][4]. - The company has raised its full-year store opening and revenue guidance, reflecting confidence in achieving performance targets amid increasing competition [3][4]. - The retail business saw a remarkable growth of 153.6% in Q2 2024, with quarterly revenue surpassing RMB 500 million, driven by an improved online platform and brand marketing efforts [3][4]. Revenue and Store Expansion - As of the end of Q2 2024, Atour Group had 1,412 operating stores, with 123 new stores opened in Q2 2024, marking the highest quarterly opening since its listing. The company aims to reach 2,000 stores by 2025 [3][4]. - The full-year store opening guidance for 2024 has been increased to 400 stores from the previous 360, and the revenue growth target has been raised to 48%-52% from 40% [3][4]. Financial Performance - The report projects significant revenue growth for Atour Group, with expected revenues of RMB 7.1 billion in 2024, RMB 9.1 billion in 2025, and RMB 10.6 billion in 2026, reflecting year-on-year growth rates of 52.6%, 28.2%, and 16.2% respectively [7][10]. - Core net profit is forecasted to reach RMB 1.3 billion in 2024, RMB 1.6 billion in 2025, and RMB 1.9 billion in 2026, with year-on-year growth rates of 39.3%, 28.8%, and 19.2% respectively [7][10]. Shareholder Return Plan - Atour Group announced a three-year shareholder return plan starting in 2024, committing to distribute dividends amounting to no less than 50% of the previous year's net profit. A dividend of $0.15 per share has been declared, totaling $62 million [4][6].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported Q2 2024 revenue of 1.8 billion RMB, an increase of 64.5% year-on-year, and a net profit of 304 million RMB, up 27.1% [1] - The RevPAR for Q2 was 359 RMB, down 6.5% year-on-year, but still 107% of the same period in 2019, indicating a strong recovery [1] - The company continues to strengthen its position in the mid-to-high-end business travel market, with registered members reaching 76 million, a 73% increase [1] - The company has raised its annual store opening target to 400, with 123 new stores opened in Q2, marking a record high for the quarter [1] - Retail business revenue grew by 154% in Q2, benefiting from online channel promotions and new product launches [1] Summary by Sections Financial Performance - Q2 2024 revenue was 1.8 billion RMB, with a year-on-year growth of 64.5% - Adjusted net profit for Q2 was 328 million RMB, up 31.6% [1] - EBITDA for Q2 was 419 million RMB, a 25.3% increase [1] Operational Metrics - Q2 RevPAR was 359 RMB, down 6.5% year-on-year, but occupancy rate (OCC) improved slightly to 78.4% [1] - The company’s ADR was 441 RMB, down 7.2% year-on-year [1] Market Position - The company has a strong presence in the mid-to-high-end business travel market, with a 19.3% share of corporate agreement room nights [1] - The number of stores reached 1,412, a 37% increase year-on-year, with a pipeline of 712 new stores [1] Shareholder Returns - The company announced a shareholder return plan, committing to distribute at least 50% of the previous fiscal year's net profit as dividends over the next three years [1]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported Q2 2024 earnings that exceeded expectations, leading to an upward revision of its full-year revenue and store opening guidance [3] - For H1 2024, the company achieved a revenue of 3.27 billion yuan, a year-on-year increase of 75%, and a net profit attributable to shareholders of 560 million yuan, up 119% year-on-year [3] - The company plans to distribute dividends amounting to at least 50% of the previous fiscal year's net profit over the next three years, with a projected dividend yield of 3.6% [3] Revenue and Profit Forecast - The company’s total revenue for 2024 is projected to be 6.97 billion yuan, with a year-on-year growth of 49.4% [2][4] - The net profit attributable to shareholders is forecasted to be 1.17 billion yuan in 2024, reflecting a year-on-year increase of 58.9% [2][4] - The earnings per share (EPS) for 2024 is estimated at 2.84 yuan, with a price-to-earnings (P/E) ratio of 13.84 [2][4] Business Performance - The company’s overall occupancy rate (OCC) for Q2 was 78.4%, an increase of 1.3 percentage points year-on-year, while the average daily rate (ADR) was 440.6 yuan, down 7% year-on-year [3] - The revenue from the management franchise, direct hotels, and retail segments for Q2 was 1.02 billion yuan, 180 million yuan, and 590 million yuan respectively, with year-on-year growth rates of 64%, -18%, and 139% [3] - The company has increased its full-year store opening target from 360 to 400, with a total of 1,412 hotels in operation as of the end of Q2 [3] Financial Metrics - The company’s net profit margin for Q2 was 16.9%, a decrease of 4.9 percentage points compared to the same period last year, primarily due to a high base from government subsidies received in the previous year [3] - The company’s total assets are projected to reach 9.7 billion yuan by 2025, with a debt-to-asset ratio of 60.2% [8][9]

NASDAQ: ATAT Atour Lifestyle Holdings Limited 2Q24 Results Presentation August 2024 Disclaimer 免责声明 This presentation has been prepared by Atour Lifestyle Holdings Limited (the "Company") solely for informational purposes and has not been independently verified. No representations, warranties or undertakings, express or implied, are made by the Company or any of its affiliates, advisers or representatives as to, and no reliance should be placed upon, the accuracy, fairness, completeness or correctness of th ...

Atour Lifestyle Holdings Limited (NASDAQ:ATAT) Q2 2024 Earnings Conference Call August 29, 2024 7:00 AM ET Company Participants Alison Zhang - Director, IR Haijun Wang - Founder, Chairman & CEO Jianfeng Wu - Co-CFO Conference Call Participants Dan Chee - Morgan Stanley Xin Chen - UBS Sijie Lin - CICC Ronald Leung - Bank of America Liu Ji Wei - CITIC Lydia Ling - Citi Operator Ladies and gentlemen, thank you for standing by, and welcome to the Atour Lifestyle Holdings Second Quarter 2024 Earnings Conference ...

Exhibit 99.1 Atour Lifestyle Holdings Limited Reports Second Quarter of 2024 Unaudited Financial Results · A total of 1,412 hotels, or 161,686 hotel rooms, in operation as of June 30, 2024. · Net revenues for the second quarter of 2024 increased by 64.5% year-over-year to RMB1,797 million (US$247 million), compared with RMB1,093 million for the same period of 2023. · Net income for the second quarter of 2024 increased by 27.1% year-over-year to RMB304 million (US$42 million), compared with RMB239 million fo ...

Core Insights - Atour Lifestyle Holdings Limited reported strong financial performance for the second quarter of 2024, with net revenues increasing by 64.5% year-over-year to RMB1,797 million (US$247 million) [7][14] - The company achieved a net income of RMB304 million (US$42 million), reflecting a 27.1% increase compared to the same period in 2023 [14] - The hotel network expanded significantly, with 1,412 hotels and 161,686 rooms in operation as of June 30, 2024, marking increases of 36.6% and 34.3% year-over-year, respectively [3][5] Financial Performance - Adjusted net income (non-GAAP) for Q2 2024 rose by 31.6% year-over-year to RMB328 million (US$45 million) [14] - EBITDA (non-GAAP) increased by 25.3% year-over-year to RMB419 million (US$58 million) [15] - Adjusted EBITDA (non-GAAP) for the quarter was RMB443 million (US$61 million), up 28.6% from the previous year [15] Operational Highlights - The average daily room rate (ADR) for Q2 2024 was RMB441, down from RMB475 in Q2 2023 [3] - The occupancy rate improved to 78.4% in Q2 2024, compared to 77.1% in the same period last year [3] - Revenue per available room (RevPAR) was RMB359, a decrease from RMB384 in Q2 2023 [3] Retail Business Growth - Gross merchandise value (GMV) from the retail business surged by 157.6% year-over-year to RMB620 million in Q2 2024 [4] - Retail revenues increased by 153.6% to RMB537 million (US$74 million) compared to RMB212 million in Q2 2023 [9] Cost and Expenses - Total operating costs and expenses for Q2 2024 were RMB1,400 million (US$193 million), up from RMB816 million in Q2 2023 [10] - Hotel operating costs accounted for 64.3% of revenues from manachised and leased hotels, compared to 60.2% in the same period last year [10] Future Outlook - For the full year of 2024, the company expects total net revenues to increase by 48% to 52% compared to 2023 [17]

SHANGHAI, Aug. 29, 2024 (GLOBE NEWSWIRE) -- Atour Lifestyle Holdings Limited (“Atour” or the “Company”) (NASDAQ: ATAT), a leading hospitality and lifestyle company in China, today announced that, as a part of the Company’s ongoing efforts to enhance shareholder value, its Board of Directors (the “Board”) has approved a three-year annual dividend policy (the “Annual Dividend Policy”). Under the Annual Dividend Policy, the Company plans to declare and distribute dividends with an aggregate amount of no less t ...

Core Viewpoint - Atour Lifestyle Holdings Limited will report its unaudited financial results for the second quarter of 2024 on August 29, 2024, before U.S. markets open [1]. Group 1: Financial Reporting - The company will host a conference call at 7:00 AM U.S. Eastern time on August 29, 2024 [1]. - A live webcast of the conference call will be available on the company's investor relations website [1]. - Participants wishing to join the conference call via telephone must pre-register to receive dial-in numbers and a personal PIN [1][2]. Group 2: Company Overview - Atour Lifestyle Holdings Limited is a leading hospitality and lifestyle company in China, recognized for its distinct portfolio of lifestyle hotel brands [3]. - The company is the leading upper midscale hotel chain in China and the first Chinese hotel chain to develop scenario-based retail business [3]. - Atour is committed to innovation in China's hospitality industry and aims to build new lifestyle brands around hotel offerings [3].