Atour Lifestyle (ATAT)2024-09-02 06:04Investment Rating - The report maintains a "Buy" rating for Atour Group (ATAT.US) and raises the target price to 18.7 [4][12]. Core Insights - Atour Group recorded revenue of RMB 1.8 billion in Q2 2024, representing a year-on-year growth of 64.5%, slightly exceeding expectations. This growth is attributed to the rapid expansion of franchise stores and retail business revenue [3][4]. - The company has raised its full-year store opening and revenue guidance, reflecting confidence in achieving performance targets amid increasing competition [3][4]. - The retail business saw a remarkable growth of 153.6% in Q2 2024, with quarterly revenue surpassing RMB 500 million, driven by an improved online platform and brand marketing efforts [3][4]. Revenue and Store Expansion - As of the end of Q2 2024, Atour Group had 1,412 operating stores, with 123 new stores opened in Q2 2024, marking the highest quarterly opening since its listing. The company aims to reach 2,000 stores by 2025 [3][4]. - The full-year store opening guidance for 2024 has been increased to 400 stores from the previous 360, and the revenue growth target has been raised to 48%-52% from 40% [3][4]. Financial Performance - The report projects significant revenue growth for Atour Group, with expected revenues of RMB 7.1 billion in 2024, RMB 9.1 billion in 2025, and RMB 10.6 billion in 2026, reflecting year-on-year growth rates of 52.6%, 28.2%, and 16.2% respectively [7][10]. - Core net profit is forecasted to reach RMB 1.3 billion in 2024, RMB 1.6 billion in 2025, and RMB 1.9 billion in 2026, with year-on-year growth rates of 39.3%, 28.8%, and 19.2% respectively [7][10]. Shareholder Return Plan - Atour Group announced a three-year shareholder return plan starting in 2024, committing to distribute dividends amounting to no less than 50% of the previous year's net profit. A dividend of 62 million [4][6].