SSAW Hotels(301073) Minsheng Securities·2024-11-01 08:30Investment Rating - The report maintains a "Recommended" rating for the company [2][4]. 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 31.85%. However, the net profit attributable to the parent company decreased by 23.61% to 18 million yuan [2]. - The third quarter revenue was 173 million yuan, up 7.28% year-on-year, with a net profit of 5 million yuan, reflecting a 19.07% increase compared to the same period last year [2]. - The report highlights the ongoing expansion of the company's store contracts, with 13 new contracts signed in the third quarter, adding nearly 3,000 rooms, marking the brand's entry into Shanxi and Heilongjiang markets [2]. Financial Performance Summary - For the first three quarters of 2024, the company experienced a gross margin of 30.83%, down 10.63 percentage points year-on-year, and a net profit margin of 3.64%, down 2.64 percentage points year-on-year [2]. - The third quarter saw a gross margin of 30.17%, a decrease of 9.53 percentage points year-on-year, while the net profit margin was 2.68%, an increase of 0.27 percentage points year-on-year [2]. - The report projects net profits for the company to be 32 million yuan, 74 million yuan, and 107 million yuan for the years 2024, 2025, and 2026, respectively, with corresponding PE ratios of 153x, 66x, and 46x [2][5].