SSAW Hotels(SZ:301073) Minsheng Securities·2024-09-02 14:30Investment Rating - The report maintains a "Recommended" rating for the company [1][3]. Core Views - The company achieved a revenue of 330 million yuan in H1 2024, representing a year-on-year increase of 49.8%, while the net profit attributable to shareholders decreased by 31.82% to 13.7 million yuan [1]. - The RevPAR (Revenue per Available Room) showed a slight decline due to high base effects and the ramp-up of new stores, with H1 2024 RevPAR at 310.5 yuan, down 2.1% year-on-year [1]. - The company signed 19 new projects in H1 2024, adding nearly 3,600 rooms, and continues to strengthen its presence in core areas [1]. - The performance of newly opened direct-operated hotels is under pressure due to high initial costs, but existing hotels have maintained stable gross margins [1]. - The company is expected to see earnings growth with projected net profits of 80 million, 140 million, and 200 million yuan for 2024, 2025, and 2026, respectively, corresponding to PE ratios of 41x, 23x, and 16x [1]. Financial Summary - In H1 2024, the company reported a revenue of 330 million yuan, with a net profit of 13.7 million yuan, and a non-recurring net profit of 13.74 million yuan [1]. - For Q2 2024, the revenue was 170 million yuan, with a net profit of 9.038 million yuan, reflecting a year-on-year decrease of 43.5% [1]. - The company’s total number of mid-to-high-end projects has exceeded 400, with over 85,000 rooms [1]. - The average gross margin for existing hotels remained stable compared to the previous year, despite the challenges faced by new openings [1].