BTG Hotels(600258) Xin Lang Cai Jing·2025-05-07 00:28Core Insights - The company achieved a revenue of 7.751 billion with a year-on-year decrease of 0.54%, and a net profit attributable to shareholders of 806 million, reflecting a year-on-year increase of 1.41% [1] - The company is transitioning to a flatter regional operational structure to enhance local development and aims to open 1,500 new stores in 2025, accelerating its expansion pace [1][3] - The company maintains an "overweight" rating, anticipating improved operational efficiency and profitability if industry supply and demand balance is restored in the second half of 2025 [1][4] Financial Performance - In 2024, hotel and scenic area operating revenues were 7.235 billion and 516 million respectively, with year-on-year changes of -0.58% and +0.07% [2] - The overall RevPAR, ADR, and OCC for the company in 2024 were 167 yuan, 245 yuan, and 68.2%, showing year-on-year declines of 3.2%, 2.3%, and 0.6 percentage points [2] - In Q1 2025, the company reported revenues of 1.765 billion, a year-on-year decrease of 4.34%, while net profit attributable to shareholders was 143 million, reflecting an 18.37% increase [1][2] Store Expansion and Quality Improvement - The company opened 1,353 new stores in 2024, a year-on-year increase of 12.5%, with 710 of these being standard stores, marking a 55.4% increase [3] - In Q1 2025, the company continued its positive trend with 300 new stores opened, a 46.3% increase year-on-year, and 192 of these were standard stores, representing an 88.2% increase [3] - The company’s total store count reached 7,084 as of Q1 2025, with economic and mid-to-high-end hotels making up 28.2% and 29.0% of the total respectively [3] Valuation and Future Outlook - The target price for the company is set at 20.50 yuan, maintaining an "overweight" rating, despite slight downward adjustments to the EPS for 2025 and 2026 [4] - The company is expected to experience an upward turning point in operations due to improved expansion quality and speed [4]