Ge Long Hui·2026-03-28 06:53Core Viewpoint - The company reported its 2025 performance, showing a slight revenue growth but a significant decline in net profit, primarily due to changes in the fair value of investment properties [1][2]. Financial Data - Total revenue for 2025 increased by 2.2% to $2.234 billion - EBITDA (including joint ventures) rose by 2.4% to $778 million - Net profit attributable to shareholders decreased by 30.4% to $112 million, mainly due to a decline in the fair value of investment properties [1]. Operational Data - In 2025, the RevPAR (Revenue per Available Room) increased by 3% to $111, with ADR (Average Daily Rate) rising by approximately 1% and OCC (Occupancy Rate) increasing by about 1.2 percentage points [1]. Dividend Information - The company declared a dividend of 15 Hong Kong cents per share for 2025, corresponding to a dividend yield of approximately 3.2% [1]. Development Trends - The company is initiating a light-asset expansion plan, focusing on brands like Traders and JEN, and plans to establish a business development team to advance this strategy [1]. - Key strategies include restructuring the supply chain to provide cost-effective products and enhancing financial, human resources, recruitment, and operational infrastructure [1]. Leverage Reduction Strategy - The company aims to reduce leverage through operational cash flow and potential sales of non-core assets, with net debt expected to decrease from $4.421 billion at the end of 2024 to $4.326 billion at the end of 2025 [2]. - The leverage ratio is projected to decline from 81% to 77%, and average financing costs are expected to drop from 4.5% in 2024 to 4.0% in 2025 [2]. Operational Efficiency - The company plans to enhance EBITDA margin without compromising user experience, focusing on improving operational efficiency [2]. - Strategies include refining the SLC membership system to boost engagement and repurchase rates, streamlining inefficient processes, and strengthening supply chain capabilities for lower costs and higher delivery efficiency [2]. Profit Forecast and Valuation - The EBITDA forecast for 2026 remains unchanged at $802 million, with a new forecast for 2027 set at $829 million [2]. - The company maintains an outperform rating and a target price of HKD 5.2, corresponding to EV/EBITDA multiples of 7.6x and 7.0x for 2026 and 2027, respectively, indicating an 11% upside potential [2].