JINJIANG HOTELS(SH:600754) EBSCN·2024-09-06 09:40Investment Rating - The report maintains an "Accumulate" rating for the company with a current price of 24.00 CNY [1] Core Views - The company is experiencing steady reform progress, with asset disposal and overseas loss reduction driving growth in net profit attributable to shareholders [6][7] - The company reported a revenue of 6.892 billion CNY for H1 2024, a year-on-year increase of 0.2%, and a net profit of 848 million CNY, up 59.2% year-on-year, largely due to the disposal of a fashion travel business contributing 421 million CNY [6] - The report highlights a double-digit revenue growth in domestic full-service hotels, while limited-service hotels face pressure [6] Summary by Sections Financial Performance - For H1 2024, the company achieved a revenue of 68.92 billion CNY, with a net profit of 8.48 billion CNY, reflecting a significant year-on-year increase [6] - The second quarter of 2024 saw a revenue of 38.86 billion CNY, down 4.8% year-on-year, but net profit rose by 68.0% to 6.58 billion CNY [6] - The domestic limited-service hotel segment reported a revenue of 46.74 billion CNY, a slight increase of 0.32%, while full-service hotels saw a revenue increase of 43.14% to 1.04 billion CNY [6] Market Dynamics - The report notes that the RevPAR for domestic limited-service hotels decreased by 4.63% year-on-year to 153.84 CNY, attributed to weak domestic demand and increased hotel supply [6] - The average room rate for limited-service hotels was 246.30 CNY, down 0.4%, with an occupancy rate of 62.46%, a decline of 2.75 percentage points [6] International Operations - The overseas limited-service hotel segment reported a revenue of 2.60 billion EUR, down 4.17% year-on-year, but the net loss was reduced to 23.47 million EUR, an improvement from a loss of 75 million EUR [6] - The average room rate for overseas hotels showed resilience, with a slight increase of 1.8% year-on-year [6] Expansion Strategy - The company opened 680 new hotels in H1 2024, with a net increase of 490 hotels, aiming for a total of 1,200 new openings for the year [6] - The report indicates a rapid expansion of franchise stores, with a net increase of 536 franchise hotels, while direct-operated stores are being optimized [6] Future Outlook - The company has launched an equity incentive plan with performance targets for net profit growth set for 2024 to 2026 [7] - The report adjusts the profit forecast for 2024-2026, with net profit estimates of 1.41 billion CNY, 1.51 billion CNY, and 1.74 billion CNY respectively, reflecting a downward revision [7][8]