Atour Lifestyle (ATAT)2024-08-31 04:22Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported Q2 2024 earnings that exceeded expectations, leading to an upward revision of its full-year revenue and store opening guidance [3] - For H1 2024, the company achieved a revenue of 3.27 billion yuan, a year-on-year increase of 75%, and a net profit attributable to shareholders of 560 million yuan, up 119% year-on-year [3] - The company plans to distribute dividends amounting to at least 50% of the previous fiscal year's net profit over the next three years, with a projected dividend yield of 3.6% [3] Revenue and Profit Forecast - The company’s total revenue for 2024 is projected to be 6.97 billion yuan, with a year-on-year growth of 49.4% [2][4] - The net profit attributable to shareholders is forecasted to be 1.17 billion yuan in 2024, reflecting a year-on-year increase of 58.9% [2][4] - The earnings per share (EPS) for 2024 is estimated at 2.84 yuan, with a price-to-earnings (P/E) ratio of 13.84 [2][4] Business Performance - The company’s overall occupancy rate (OCC) for Q2 was 78.4%, an increase of 1.3 percentage points year-on-year, while the average daily rate (ADR) was 440.6 yuan, down 7% year-on-year [3] - The revenue from the management franchise, direct hotels, and retail segments for Q2 was 1.02 billion yuan, 180 million yuan, and 590 million yuan respectively, with year-on-year growth rates of 64%, -18%, and 139% [3] - The company has increased its full-year store opening target from 360 to 400, with a total of 1,412 hotels in operation as of the end of Q2 [3] Financial Metrics - The company’s net profit margin for Q2 was 16.9%, a decrease of 4.9 percentage points compared to the same period last year, primarily due to a high base from government subsidies received in the previous year [3] - The company’s total assets are projected to reach 9.7 billion yuan by 2025, with a debt-to-asset ratio of 60.2% [8][9]