JINJIANG HOTELS(SH:600754) Huachuang Securities·2024-08-11 12:32Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 27.4 yuan [2][14]. Core Viewpoints - The company announced a restricted stock incentive plan, granting up to 8 million shares, which accounts for 0.75% of the total share capital. The initial grant price is set at 11.97 yuan per share, representing a 50% discount from the closing price on August 9 [2][9]. - The performance assessment indicators focus on four key areas: return on equity (ROE), net profit growth rate, new hotel openings, and main business profit margin, emphasizing the company's operational and financial quality improvement goals during its reform phase [2][10]. - The company plans to open an average of 1,200 new hotels annually over the next three years, aiming to enhance its scale and revenue [10][14]. - The company forecasts a significant increase in net profit for the first half of 2024, with an expected range of 800 to 850 million yuan, reflecting a year-on-year growth of 50.2% to 59.6% [14]. - The report adjusts the net profit forecasts for 2024-2026 to 1.47 billion, 1.49 billion, and 1.74 billion yuan, respectively, based on the completion of the transfer of a subsidiary and the anticipated improvement in financial expenses [14]. Financial Summary - Total revenue for 2023 is projected at 14.649 billion yuan, with a year-on-year growth rate of 33.1%. The net profit attributable to the parent company is expected to be 1.002 billion yuan, reflecting a staggering growth of 782.7% [15]. - The company’s PE ratio is forecasted to be 25 for 2023, decreasing to 17 for 2024 and 2025, and further to 15 for 2026, indicating a positive outlook on valuation [15]. - The company’s total assets are estimated at 50.587 billion yuan for 2023, with a debt-to-asset ratio of 65.05% [5][15].