JINJIANG HOTELS(600754) Huachuang Securities·2024-11-08 18:01Investment Rating - The report maintains a "Recommendation" rating for the company with a target price of 30.2 yuan, compared to the current price of 28.32 yuan [1]. Core Views - The company's revenue and profit for Q3 2024 fell short of expectations, primarily due to increased industry supply and average room price impacts [2]. - Domestic hotel operations are under pressure, while overseas performance remains stable [2]. - The company has a steady opening speed but a slowdown in signing new contracts [2]. - The report adjusts the profit forecast for 2024-2026, reflecting increased pricing pressure in the hotel industry [2]. Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 10.79 billion yuan, a decrease of 2.55% year-on-year, and a net profit of 1.106 billion yuan, an increase of 12.13% year-on-year [1]. - In Q3 2024, the company reported revenue of 3.898 billion yuan, down 7.10% year-on-year, and a net profit of 258 million yuan, down 43.08% year-on-year [1]. - The company opened 469 new hotels in Q3 2024, with a net increase of 248 hotels for the first three quarters [2]. Revenue and Profit Forecast - The forecast for total revenue is adjusted to 14.328 billion yuan for 2024, with a projected growth of 5.0% in 2025 and 5.1% in 2026 [3]. - The forecast for net profit is adjusted to 1.232 billion yuan for 2024, with expected growth rates of 23.0% in 2025 and 25.7% in 2026 [3]. Market Position and Valuation - The company has a total market capitalization of 30.304 billion yuan and a debt-to-asset ratio of 63.26% [4]. - The price-to-earnings ratio is projected to be 25 for 2025, 23 for 2026, and 19 for 2026 [3].