SSAW Hotels(301073) Soochow Securities·2024-10-30 08:03Investment Rating - The investment rating for the company is "Accumulate" (maintained) [1] Core Views - The company reported a revenue of 503 million yuan for the first three quarters of 2024, representing a year-on-year increase of 32%, while the net profit attributable to the parent company was 18 million yuan, down 24% year-on-year [2] - In Q3, the company achieved a revenue of 173 million yuan, up 7% year-on-year, and a net profit of 5 million yuan, up 19% year-on-year, driven by an increase in the number of direct-operated stores [2] - The RevPAR for direct-operated hotels in Q3 decreased by 15% year-on-year, with occupancy rate (OCC) at 64.9% and average daily rate (ADR) at 484 yuan [3] - The company opened 1 new direct-operated hotel in Q3, bringing the total to 70 under the Junting brand, with a total of 22 hotels under development [3] - The company is expected to continue to recover its profitability as new projects ramp up and it expands its direct and managed operations nationwide [4] Financial Forecasts and Valuation - The company’s total revenue is projected to reach 644.23 million yuan in 2024, with net profit attributable to the parent company expected to be 39.45 million yuan [1] - The earnings per share (EPS) for 2024 is estimated at 0.20 yuan, with a price-to-earnings (P/E) ratio of 116.24 based on the current price [1] - The net profit forecasts for 2024, 2025, and 2026 have been adjusted to 39.45 million yuan, 65.52 million yuan, and 89.44 million yuan respectively, reflecting a downward revision due to the decline in RevPAR [4]