JINJIANG HOTELS(SH:600754) SINOLINK SECURITIES·2024-10-31 06:56Investment Rating - The report maintains a "Buy" rating for Jinjiang Hotels (600754.SH) [1] Core Views - The company reported a revenue of 10.79 billion RMB for the first three quarters, a decrease of 2.55% year-on-year, while the net profit attributable to shareholders increased by 12.13% to 1.11 billion RMB [1] - The report highlights that the domestic hotel business faced pressure due to high base effects, with RevPAR declining by 18.2% in Q3 [1] - The company is expected to exceed its annual target of opening 1,200 new hotels, having opened 469 hotels in Q3 [1] Summary by Sections Financial Performance - Q1-3 revenue: 10.79 billion RMB, down 2.55% YoY; net profit: 1.11 billion RMB, up 12.13%; Q3 revenue: 3.90 billion RMB, down 7.10%; Q3 net profit: 258 million RMB, down 43.08% [1] - Domestic full-service hotel revenue in Q3: 57.49 million RMB, up 42.9%; RevPAR: 272.3 RMB, down 18.2% [1] - Domestic limited-service hotel revenue: 2.53 billion RMB, down 11.6%; RevPAR: 174.4 RMB, down 8.4% [1] Operational Insights - The company opened 469 hotels in Q3, with a net increase of 248 hotels; limited-service hotels accounted for 446 new openings [1] - The company aims to improve internal management efficiency and reduce debt [1] Profitability and Valuation - Q3 gross margin: 44.3%, up 0.6 percentage points; operating profit down 23.8% YoY [1] - Earnings forecasts for 2024E-2026E: net profit of 1.20 billion RMB, 1.27 billion RMB, and 1.58 billion RMB, respectively, with corresponding P/E ratios of 26.1X, 24.7X, and 19.8X [1]