JINJIANG HOTELS(SH:600754) EBSCN·2024-07-16 01:01Investment Rating - The report maintains a "Buy" rating for the company [4] Core Views - The company is expected to achieve a net profit attributable to shareholders of 800 to 850 million yuan in the first half of 2024, representing a year-on-year increase of 52.93% to 62.49% [2] - The second quarter of 2024 is projected to see a net profit of 610 to 660 million yuan, reflecting a year-on-year growth of 55.2% to 67.9% [2] - The hotel industry is experiencing a decline in the industry prosperity index, with weak growth in Average Daily Rate (ADR) due to increased supply [2] - The company is optimizing its capital structure by increasing investment in its overseas subsidiary, aiming to reduce financial costs and improve profitability [2] - The divestment of the "Fashion Journey" equity allows the company to focus on enhancing its core business capabilities [2][3] Financial Summary - The company forecasts net profits of 1.527 billion, 1.772 billion, and 1.977 billion yuan for the years 2024, 2025, and 2026 respectively [3] - The expected Earnings Per Share (EPS) for 2024, 2025, and 2026 are 1.43, 1.66, and 1.85 yuan, with corresponding Price-to-Earnings (P/E) ratios of 17, 14, and 13 times [3] - The company’s revenue is projected to grow from 11.008 billion yuan in 2022 to 17.754 billion yuan in 2026, with a revenue growth rate stabilizing around 6% [4][8] Strategic Initiatives - The company is implementing organizational reforms to enhance long-term competitiveness, focusing on optimizing hotel operations and brand management [3] - The company aims to strengthen its global brand management system and improve its service and business model innovation [3]