JINJIANG HOTELS(600754) 西部证券·2024-08-12 15:27Investment Rating - The investment rating for the company is "Accumulate" [4][7]. Core Views - The company has introduced a restricted stock incentive plan for 2024, aiming to double its performance targets over three years, with a focus on key performance indicators such as non-recurring net profit growth and return on equity [1][2]. - The company is expected to achieve net profits of RMB 1.25 billion, RMB 1.50 billion, and RMB 1.67 billion for the years 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 20.5, 17.1, and 15.3 times [2][3]. Summary by Sections Incentive Plan - The company plans to repurchase 4-8 million shares, accounting for 0.37%-0.75% of the total share capital, with a budget of up to RMB 278 million at a maximum price of RMB 34.8 per share [1]. - The incentive plan targets 148 high-level and middle management personnel, with 152,300 shares reserved for future grants [1]. Performance Targets - The performance assessment for the incentive plan includes three phases with specific targets: - Non-recurring return on equity (ROE) minimums of 5.8%, 7.0%, and 8.0% for 2024, 2025, and 2026 respectively - Non-recurring net profit growth rates of 30%, 65%, and 100% - A minimum of 1,200 new hotel openings each year [1][2]. Financial Projections - The company is projected to have operating revenues of RMB 16.85 billion, RMB 18.26 billion, and RMB 19.26 billion for 2024, 2025, and 2026 respectively, with growth rates of 15.0%, 8.4%, and 5.5% [3]. - The net profit for 2024 is expected to be RMB 1.25 billion, reflecting a growth rate of 24.6% compared to the previous year [3].