JINJIANG HOTELS(600754) EBSCN·2024-11-04 00:46Investment Rating - The report maintains a rating of "Accumulate" for the company with a current price of 26.95 yuan [1] Core Views - The company reported a revenue of 10.79 billion yuan for the first three quarters of 2024, a year-on-year decrease of 2.6%, while the net profit attributable to shareholders was 1.106 billion yuan, an increase of 12.1% year-on-year [1] - The third quarter of 2024 saw a revenue of 3.898 billion yuan, down 7.1% year-on-year, and a net profit of 258 million yuan, down 43.1% year-on-year [1] - The report highlights challenges in achieving the annual equity incentive targets due to pressure on net profit margins and increased tax burdens [1] Financial Performance Summary - For Q3 2024, the company’s gross profit margin was 44.3%, a year-on-year increase of 0.6 percentage points, while the expense ratio was 31.1%, an increase of 2.9 percentage points [1] - The company opened 469 new hotels in Q3 2024, with a net increase of 248 hotels, indicating a strong expansion strategy [1] - The report projects a decline in revenue for 2024, estimating 14.21 billion yuan, a decrease of 3% from 2023, with net profit expected to be 1.244 billion yuan, an increase of 24.23% [2][3] Revenue and Profit Forecast - The company’s revenue is projected to grow to 14.920 billion yuan in 2025 and 15.666 billion yuan in 2026, with corresponding net profits of 1.411 billion yuan and 1.570 billion yuan respectively [2][3] - The earnings per share (EPS) are forecasted to be 1.16 yuan for 2024, 1.32 yuan for 2025, and 1.47 yuan for 2026 [2][3] Valuation Metrics - The report indicates a price-to-earnings (P/E) ratio of 23 for 2024, decreasing to 20 in 2025 and 18 in 2026, suggesting a favorable long-term valuation outlook [2][3] - The return on equity (ROE) is expected to improve from 7.16% in 2024 to 7.97% in 2026 [2][3]