JINJIANG HOTELS(600754) 国信证券·2024-08-12 03:00Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [1][3]. Core Views - The company plans to repurchase shares for a restricted stock incentive plan, which is expected to boost confidence and promote the development of state-owned hotel leaders. This is the first incentive plan at the listed company level since its IPO [2][3]. - The performance targets emphasize quality growth in the core business, with specific requirements for net asset return rates and profit margins, alongside aggressive expansion plans [2][3]. - The company's future growth is primarily driven by domestic hotel expansion and optimization of overseas hotel losses. Despite current pressures on REVPAR, the company aims to enhance operational efficiency and profitability through various strategies [3][11]. Summary by Sections Investment Rating - The report maintains an "Outperform the Market" rating, reflecting a positive outlook on the company's performance relative to market indices [1][3]. Company Announcements - The company announced a plan to invest up to 278 million yuan in repurchasing shares from the secondary market, with a focus on incentivizing management through restricted stock [2][3]. Performance Targets - The incentive plan includes specific performance targets: - Net asset return rates of at least 5.8%/7%/8% for 2024/2025/2026 [7]. - Non-GAAP net profit growth rates of at least 30%/65%/100% from a 2023 base of 774 million yuan, targeting 1.007 billion yuan in 2024 [7]. - Opening at least 1,200 new hotels annually, totaling 3,600 by 2026 [7][11]. Growth Drivers - The company is focusing on domestic hotel expansion and reducing losses in overseas operations. The domestic hotel sector is currently facing challenges, but the company plans to counteract this through strategic growth and operational improvements [3][11][19]. - The report highlights the importance of enhancing the operational efficiency of both domestic and international hotel segments to achieve the set performance targets [11][19]. Financial Projections - The report adjusts profit forecasts for 2024-2026, projecting net profits of 1.422 billion yuan, 1.514 billion yuan, and 1.764 billion yuan respectively, reflecting a cautious outlook due to ongoing market pressures [22][21]. - The company's valuation is considered reasonable, with projected P/E ratios of 18x, 17x, and 14x for the respective years [21][22].