JINLING HOTEL(601007) 国盛证券·2024-11-06 17:05Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The company has shown resilient hotel operations while actively expanding its upstream and downstream industrial chain, including liquor trade, commercial complex operations, property management, and food technology [4]. - The company is accelerating the development of its food technology business through the acquisition of Jinling Fast Food Company, which will enhance operational capabilities and brand standardization [3][4]. - Despite a stable revenue growth of 2.6% year-on-year in the first three quarters of 2024, the net profit attributable to the parent company decreased by 24.36% year-on-year, primarily due to the cancellation of tax exemptions and the market cultivation period of newly opened hotels [2][4]. Financial Performance Summary - For Q3 2024, the company achieved a revenue of 4.83 billion yuan, a year-on-year increase of 3.67%, while the net profit attributable to the parent company was 0.19 billion yuan, down 22.73% year-on-year [1][2]. - The gross margin for Q3 2024 decreased by 1.6 percentage points to 26.3%, and the net profit margin decreased by 1.3 percentage points to 3.9% [2]. - The company expects revenues of 18.67 billion yuan, 20.76 billion yuan, and 23.86 billion yuan for 2024, 2025, and 2026 respectively, with net profits of 0.46 billion yuan, 0.67 billion yuan, and 0.86 billion yuan for the same years [4][5]. Strategic Developments - The acquisition of Jinling Fast Food Company for 9.2 million yuan aims to integrate resources and enhance operational capabilities in the food technology sector [3]. - The company plans to leverage the experience of Jinling Fast Food in store operations to develop a standardized model for its "Jinling Food" brand [3]. - The strategic focus includes expanding into new market segments such as group dining, which will combine food research, supply chain management, and brand operations [3].