BTG Hotels(SH:600258) HTSC·2025-05-07 02:10Investment Rating - The report maintains an "Accumulate" rating for the company [7] Core Views - The company achieved a revenue of 7.751 billion RMB in 2024, a slight decrease of 0.54% year-on-year, with a net profit attributable to the parent company of 806 million RMB, reflecting a year-on-year increase of 1.41% [1] - The company is focusing on enhancing operational efficiency and profitability through a flatter regional operational structure and accelerated standard store expansion, targeting to open 1,500 new stores in 2025 [1][4] - The target price for the company is set at 20.50 RMB, reflecting an increase from the previous target of 17.85 RMB, based on a 25x PE ratio for 2025 [4][8] Revenue and Profitability - In 2024, the hotel and scenic area operating revenues were 7.235 billion RMB and 516 million RMB, respectively, with year-on-year changes of -0.58% and +0.07% [2] - The overall RevPAR, ADR, and occupancy rate for the company in 2024 were 167 RMB, 245 RMB, and 68.2%, showing a year-on-year decline of 3.2%, 2.3%, and 0.6 percentage points [2][3] - The company reported a net profit margin of 10.41% in 2023, with expectations for an increase to 11.86% by 2025 [17] Store Expansion and Quality Improvement - The company opened 1,353 new stores in 2024, a year-on-year increase of 12.5%, with a net increase of 739 stores, marking a significant improvement in store quality [3] - As of Q1 2025, the company had a total of 7,084 stores, with a focus on enhancing the quality of new openings, particularly in the standard store category [3] Financial Forecasts - The company is projected to achieve revenues of 7.902 billion RMB in 2025, with a net profit of 921 million RMB, reflecting a year-on-year growth of 14.23% [6][17] - The EPS is expected to increase from 0.72 RMB in 2024 to 0.82 RMB in 2025, with further growth anticipated in subsequent years [6][17]