TongQingLou Catering (SH:605108) Changjiang Securities·2024-11-06 01:56Investment Rating - The report maintains a "Buy" rating for the company [6][7]. Core Views - The company experienced a slight decline in revenue for Q3 2024, with a total revenue of 594 million yuan, down 1.23% year-on-year, and a significant drop in net profit attributable to shareholders, which was 2.45 million yuan, down 95.74% year-on-year [4][5]. - The company is in a phase of rapid expansion, with plans to open 10 new hotels by the end of 2024, and expects to enter a performance release period as these new establishments mature [5][6]. - The projected net profits for 2024, 2025, and 2026 are 180 million yuan, 300 million yuan, and 400 million yuan respectively, with corresponding price-to-earnings ratios of 29, 18, and 13 [6][7]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company reported total revenue of 1.865 billion yuan, an increase of 10.81% year-on-year, while net profit attributable to shareholders was 83.4 million yuan, down 58.92% year-on-year [4][5]. - The company opened 7 new large-scale stores in the first three quarters, contributing an additional 357 million yuan in revenue, although same-store sales decreased by 13.42% compared to 2023 due to high base effects from banquet demand [5][6]. Future Outlook - The company anticipates that the rapid expansion phase will conclude, leading to a gradual release of performance as new hotels and restaurant divisions mature [5][6]. - The strategic focus on integrating restaurant, hotel, and food businesses is expected to drive long-term growth, aligning with consumer preferences for value-oriented dining and accommodation experiences [6][7].