BTG Hotels(600258) ZHONGTAI SECURITIES·2024-11-07 05:50Investment Rating - The report upgrades the investment rating of the company to "Buy" [1] Core Views - The company has shown a positive trend in RevPAR during the National Day holiday, indicating a recovery in performance [1] - The opening structure of the company continues to optimize, with a focus on enhancing the proportion of standard brands [1] - The company is expected to maintain stable performance in the upcoming quarters, driven by the recovery of business travel demand [1] Financial Summary - Revenue: The company reported revenue of 5,089 million in 2022, with a projected increase to 7,809 million in 2024 and 8,939 million in 2026 [1] - Net Profit: The net profit is expected to rise from -582 million in 2022 to 850 million in 2024 and 1,061 million in 2026 [1] - Earnings Per Share (EPS): EPS is projected to improve from -0.52 in 2022 to 0.76 in 2024 and 0.95 in 2026 [1] - Return on Equity (ROE): ROE is expected to recover from -5% in 2022 to 7% in 2024 and 8% in 2026 [1] Operational Performance - The company achieved a revenue of 21.6 billion in Q3 2024, reflecting a year-on-year decrease of 6.4% [1] - The net profit for Q3 2024 was 3.7 billion, down 9.5% year-on-year [1] - The hotel management business saw a year-on-year growth of 8% in Q3, while the scenic area business declined by 9% [1] Store Opening and Structure - The company opened a total of 385 new stores in the first three quarters, with a net increase of 273 stores [1] - The proportion of standard brand hotels has increased, contributing positively to revenue [1] Cash Flow and Financial Ratios - Operating Cash Flow: The operating cash flow is projected to be 2,158 million in 2024, increasing to 2,444 million in 2026 [4] - Debt Ratios: The company maintains a debt-to-equity ratio of approximately 0.7, indicating a stable financial structure [6]