JINJIANG HOTELS(SH:600754) Changjiang Securities·2024-09-09 04:07Investment Rating - The report maintains a "Buy" rating for the company [7]. Core Insights - In the first half of 2024, the company achieved operating revenue of 6.892 billion yuan, a year-on-year increase of 0.23%. The net profit attributable to the parent company was 848 million yuan, up 59.15% year-on-year, while the net profit excluding non-recurring items was 389 million yuan, an increase of 4.02% year-on-year [5][6]. - The company has streamlined its organizational structure in China, reducing management levels from seven to four, which is expected to enhance management efficiency and allow for quicker responses to market trends [6]. - The company anticipates net profits attributable to the parent company for 2024, 2025, and 2026 to be 1.281 billion, 1.572 billion, and 1.773 billion yuan, respectively, corresponding to price-to-earnings ratios of 20, 16, and 14 times [5][6]. Financial Performance - In Q2 2024, the company reported operating revenue of 3.686 billion yuan, a decrease of 4.84% year-on-year, while net profit attributable to the parent company was 658 million yuan, an increase of 68.02% year-on-year [5]. - The company opened 680 new stores in the first half of 2024, a year-on-year increase of 16.24%, resulting in a total of 12,938 stores by the end of Q2 [5][6]. - The overall expense ratio for the company was 31.65%, a decrease of 0.55 percentage points year-on-year, with sales gross margin and net margin at 39.85% and 14.38%, respectively [6]. Future Outlook - The company is expected to respond positively to the high demand in the tourism sector during the summer peak season, leveraging its flexible organizational structure [6]. - The company is focusing on optimizing its brand matrix and development strategy, enhancing the synergy of its "three platforms" (global hotel internet, global procurement, global finance) [6].