BTG Hotels(600258) Changjiang Securities·2025-05-09 05:41Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - In Q1 2025, the company achieved operating revenue of 1.765 billion yuan, a year-on-year decrease of 4.34%, while the net profit attributable to the parent company was 143 million yuan, a year-on-year increase of 18.37% [6][2]. - The hotel industry is expected to experience steady growth due to the gradual recovery of the economy and the increasing investment willingness of franchisees [2]. - The company plans to open 1,500 new hotels in 2025, accelerating its expansion pace and continuously enhancing its hotel product offerings [2]. - The company has significant room for expansion in the mid-to-high-end hotel segment in lower-tier markets, supported by a strong inventory of existing stores [2]. - The expected net profits attributable to the parent company for 2025-2027 are 948 million, 1.084 billion, and 1.195 billion yuan, corresponding to PE ratios of 17, 15, and 13 times, respectively [2]. Summary by Sections Financial Performance - In Q1 2025, the company opened 300 new stores, a year-on-year increase of 46.3%, with a focus on mid-to-high-end hotels [2]. - The RevPAR (Revenue per Available Room) for all hotels, excluding light management hotels, was 141 yuan, a year-on-year decrease of 4.6% [2]. - The average daily rate (ADR) was 228 yuan, down 2.0% year-on-year, and the occupancy rate (OCC) was 61.7%, a decrease of 1.7 percentage points [2]. Operational Efficiency - The company managed to reduce its expense ratio, leading to an increase in net profit margin [2]. - The gross profit margin decreased by 1.23 percentage points to 35.36%, while the expense ratio fell by 1.81 percentage points to 25.76% [2]. - The net profit margin improved by 1.82 percentage points to 9.07% due to gains from the disposal of long-term equity investments [2]. Market Position and Strategy - The company is focusing on enhancing its brand image through continuous product iteration, such as the upgrade of its "Home NEO" brand [2]. - The proportion of mid-to-high-end hotels in the company's portfolio has increased, with 29% of hotels classified as such by the end of Q1 2025 [2]. - The company has a robust pipeline with 1,724 signed but not yet opened or in negotiation hotels, ensuring a solid foundation for future growth [2].