BTG Hotels(600258) Soochow Securities·2024-09-01 10:16Investment Rating - The investment rating for the company is "Buy" (maintained) [1][3] Core Views - The company reported a revenue of 3.73 billion yuan for H1 2024, a year-on-year increase of 3%, and a net profit attributable to shareholders of 360 million yuan, up 27% year-on-year [2] - In Q2, the hotel business showed a significant improvement in profit margins, with a gross margin of 48.4%, despite a 3% decline in revenue [2] - The average RevPAR for Q2 was 152 yuan, down 6% year-on-year, with an occupancy rate of 65.9% [2] - The company opened 361 new hotels in Q2, bringing the total to 6,475 hotels, a 5% increase year-on-year [2] Summary by Sections Financial Performance - Total revenue for 2022 was 5.09 billion yuan, with a forecast of 7.82 billion yuan for 2024, reflecting a slight increase of 0.36% year-on-year [1][3] - The net profit attributable to shareholders for 2022 was a loss of 576.79 million yuan, with a forecasted profit of 846.87 million yuan for 2024, indicating a growth of 6.51% year-on-year [1][3] - The latest diluted EPS for 2024 is projected to be 0.76 yuan per share [1][3] Operational Insights - The company achieved a total profit of 480 million yuan in H1, with the hotel business contributing 330 million yuan, a 41% increase year-on-year [2] - The company aims to open 1,200 to 1,400 new hotels throughout the year, with a focus on increasing the proportion of standard hotels [2] Valuation Metrics - The forecasted P/E ratios for 2024, 2025, and 2026 are 16, 14, and 14 times, respectively [3] - The company is positioned as the third-largest hotel chain in China, benefiting from resource integration with its parent group [3]