Atour Lifestyle (ATAT) 浦银国际证券·2024-11-21 08:44Investment Rating - The report maintains a "Buy" rating for Atour Group (ATAT.US) and raises the target price to 25.6 [4][9][22]. Core Insights - Atour Group's revenue for Q3 2024 reached RMB 1.899 billion, a year-on-year increase of 46.7%, exceeding expectations. The growth was driven by rapid store expansion and strong performance in retail business, particularly the Atour Planet brand, which saw a 104% increase in revenue [1][2]. - The company has net opened 140 new stores in Q3 2024, setting a new record for quarterly openings, and has raised its full-year store opening target to 450 [1][3]. - Despite a decline in RevPAR (Revenue per Available Room) of 10.5% in Q3 2024 due to high base effects and adverse weather, the report anticipates a narrowing of this decline in Q4 2024 [2][3]. Summary by Sections Financial Performance - Q3 2024 revenue was RMB 1.899 billion, with a 46.7% year-on-year growth. Franchise hotel revenue was RMB 1.179 billion, up 51%, while retail revenue reached RMB 480 million, growing 104% [1][15]. - The net profit attributable to shareholders for Q3 2024 was RMB 380 million, a 47.3% increase year-on-year [1][9]. Store Expansion - The company has net opened 360 new stores in 2024, with a target of 450 for the year. Management is confident in reaching 2,000 stores by 2025 [1][3]. Revenue Projections - The report projects that Atour Group's full-year revenue target for 2024, which is set to grow by 48%-52%, is likely to be exceeded due to strong performance in both accommodation and retail segments [3][9]. Profitability Metrics - The overall gross margin for Q3 2024 was 41.5%, with a slight decline attributed to increased sales expenses [9][10]. - The report has adjusted profit forecasts upward for 2024-2026 based on better-than-expected performance and accelerated store expansion [9][10].