JINJIANG HOTELS(SH:600754) Guotai Junan Securities·2024-07-14 10:31Investment Rating - The report assigns an "Accumulate" rating to the company, with a target price of 35.66 CNY, maintaining the previous forecast of the same price [6][7]. Core Views - The company's performance forecast for the first half of 2024 shows a significant increase in net profit, driven by overseas loss reduction and an increase in Central Reservation System (CRS) fees. The structural adjustments within the company are expected to enhance operational efficiency [6][7]. - The report anticipates a net profit of 1.506 billion CNY for 2024, reflecting a 50.3% increase compared to the previous year. The earnings per share (EPS) is projected to be 1.41 CNY for 2024 [6][7]. Financial Summary - Market Data: The company's total market capitalization is 24,590 million CNY, with a 52-week price range of 21.75 to 49.76 CNY [3]. - Balance Sheet: Shareholder equity stands at 16,888 million CNY, with a net asset value per share of 15.78 CNY and a current price-to-book ratio of 1.5 [4]. - Financial Performance: The company reported revenues of 11,310 million CNY in 2022, with projections of 14,649 million CNY for 2023 and 15,477 million CNY for 2024, indicating a growth rate of 29.5% year-on-year for 2023 [6][10]. - Profitability Metrics: The net profit attributable to shareholders is expected to reach 1,506 million CNY in 2024, with a return on equity (ROE) projected at 8.7% [6][10]. Performance Trends - The report notes a decline in stock performance over the past year, with a 49% drop in absolute terms and a 42% drop relative to the index [5]. - The company has experienced a significant recovery in its operational metrics, particularly in the second quarter of 2024, exceeding market expectations [7]. Structural Adjustments - The company is nearing the completion of its structural adjustments, which are expected to improve product offerings, team stability, and operational efficiency [7]. - The management team has stabilized, and the organization has adopted a more streamlined structure to enhance employee engagement and operational effectiveness [7]. Future Outlook - The report emphasizes that despite macroeconomic fluctuations, the company remains a leader in the industry, and the anticipated improvements in management and operations are expected to yield positive results in the latter half of 2024 [7].