JINJIANG HOTELS(600754) Changjiang Securities·2024-11-11 07:29Investment Rating - The report maintains a "Buy" rating for the company [6][8]. Core Views - In the first three quarters of 2024, the company achieved operating revenue of 10.79 billion yuan, a year-on-year decrease of 2.55%, while net profit attributable to the parent company was 1.106 billion yuan, an increase of 12.13% year-on-year [3][4]. - The company opened 469 new hotels in Q3 2024, resulting in a net increase of 248 hotels, with a focus on enhancing the structure of its hotel offerings [4][5]. - The average daily rate (ADR) for domestic hotels is under pressure, with significant declines in revenue per available room (RevPAR) across various hotel categories [4][5]. Financial Performance - For Q3 2024, the company reported operating revenue of 3.898 billion yuan, a year-on-year decrease of 7.10%, and a net profit of 258 million yuan, down 43.08% year-on-year [3][4]. - The gross margin and net margin for Q3 2024 were 44.34% and 7.52%, respectively, reflecting a decline due to increased sales expenses [5][6]. - The company expects net profits for 2024, 2025, and 2026 to be 1.281 billion, 1.446 billion, and 1.618 billion yuan, respectively, with corresponding price-to-earnings (PE) ratios of 23, 20, and 18 [6][8]. Operational Insights - The company has optimized its management structure in China, reducing the number of management levels from seven to four, which is expected to enhance operational efficiency [5][6]. - The proportion of mid-range and franchise hotels has increased, with limited-service mid-range hotels accounting for 59.65% of the total, up 2.11 percentage points year-on-year [3][4].