JINJIANG HOTELS(SH:600754) Changjiang Securities·2025-05-05 12:44Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - In Q1 2025, the company achieved operating revenue of 2.942 billion yuan, a year-on-year decrease of 8.25%, and a net profit attributable to the parent company of 27 million yuan, down 57.29% year-on-year. The company plans to continue a high opening rate, expecting to add 1,300 new hotels and sign 2,000 new contracts in 2025. The restructuring in the China region in 2024 is anticipated to enhance management efficiency. The long-term outlook is positive due to the "12+3+1" brand development strategy and the strengthening of three platforms: global hotel internet, global procurement platform, and global shared services platform [2][6][12]. Summary by Sections Financial Performance - In Q1 2025, the company reported operating revenue of 2.942 billion yuan, a decrease of 8.25% year-on-year, and a net profit of 27 million yuan, down 57.29% year-on-year [2][6]. - The gross profit margin decreased by 3.53 percentage points to 31.85%, while the net profit margin fell by 6.18 percentage points to 1.76% [12]. Store Growth and Structure Optimization - The company opened 226 new hotels in Q1 2025, with 2 full-service and 224 limited-service hotels, while closing 129 hotels. The net increase in hotels was 97, bringing the total to 13,513 [12]. - The proportion of mid-range hotels and franchise stores increased, with mid-range hotels and franchise stores accounting for 60.8% and 94.32%, respectively [12]. RevPAR and Market Dynamics - The RevPAR for full-service and limited-service hotels in mainland China decreased by 8.3% and 5.31% year-on-year, respectively. The average daily rate (ADR) for full-service and limited-service hotels fell by 9.61% and 6.84% year-on-year [12]. - The overseas limited-service hotel RevPAR decreased by 3.09% year-on-year, primarily due to occupancy rate pressure [12]. Future Outlook - The company plans to maintain a high opening rate, with expectations of 1,300 new hotels and 2,000 new contracts in 2025. The restructuring in 2024 is expected to improve management efficiency [12]. - The long-term strategy focuses on the "12+3+1" brand development and enhancing the three platforms to reduce performance pressure [12]. Profit Forecast - The forecasted net profit attributable to the parent company for 2025-2027 is 1.193 billion, 1.367 billion, and 1.555 billion yuan, corresponding to PE ratios of 22, 19, and 17 times, respectively [12].