BTG Hotels(600258) SINOLINK SECURITIES·2024-09-02 05:05Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [1][7]. Core Insights - The company reported a 3.5% increase in revenue for 1H24, totaling 3.73 billion RMB, and a 27.5% increase in net profit attributable to shareholders, amounting to 360 million RMB [1]. - The report highlights a decline in RevPAR (Revenue per Available Room) by 6.0% in Q2 2024, attributed mainly to price decreases, despite an increase in the proportion of mid-to-high-end new openings [1]. - The company is expected to face continued pressure on RevPAR in Q3, with a potential improvement in Q4 due to lower comparative bases from the previous year [1]. Summary by Sections Financial Performance - For 1H24, the company achieved a revenue of 3.73 billion RMB, with a net profit of 360 million RMB, reflecting a growth of 27.5% [1]. - In Q2 2024, the company opened 362 new hotels, with a net increase of 182, achieving approximately 47% of its annual target [1]. - The hotel business's profit margin improved significantly, with a profit margin of 15.4% in Q2 2024, up by 3.2 percentage points [1]. Revenue and Profitability Forecast - The forecast for net profit attributable to shareholders for 2024-2026 is 910 million RMB, 1.05 billion RMB, and 1.13 billion RMB, respectively, with corresponding P/E ratios of 14.5, 12.6, and 11.6 [1][3]. - The report anticipates a continued optimization of the store portfolio and upgrades, enhancing profit margin support [1]. Market Trends - The report notes that the industry is experiencing increased pressure on RevPAR, with expectations of a widening decline in Q3 but potential recovery in Q4 due to slower supply growth [1]. - The company’s strategy includes focusing on mid-to-high-end hotel openings, which accounted for 29% of new openings in Q2 2024, an increase of 12.5 percentage points [1].