Atour Lifestyle (US:ATAT) HTSC·2025-05-27 02:45Investment Rating - The report maintains a "Buy" rating for the company [7][4]. Core Views - The company recorded a revenue of 1.906 billion RMB in Q1 2025, representing a year-over-year increase of 29.8%, while net profit was 244 million RMB, down 5.5% year-over-year due to increased equity incentive payments [1]. - The retail business is experiencing strong growth, with a GMV of 845 million RMB in Q1 2025, up 70.9% year-over-year, leading to an upward revision of the revenue growth guidance for 2025 to 50% [3]. - The company is focusing on enhancing brand competitiveness and user engagement through differentiated products and improved member experiences, aiming to achieve the "2000 good stores" target by the end of 2025 [1][3]. Summary by Sections Financial Performance - For the full year 2024, the company expects revenue of 7.248 billion RMB, a year-over-year increase of 55.3%, and a net profit of 1.275 billion RMB, up 73% year-over-year [1]. - The adjusted net profit for Q1 2025 was 345 million RMB, reflecting a 32.3% year-over-year increase [1]. Business Segments - The hotel segment's revenue from franchise and direct-operated hotels in Q1 2025 was 1.032 billion RMB and 129 million RMB, respectively, with franchise revenue growing by 23.5% year-over-year [2]. - The retail segment's growth is driven by strong performance in pillow products and rapid sales of new bedding items, which are well-coordinated with the hotel business [1][3]. Market Position and Valuation - The company is positioned as a leader in the mid-to-high-end market, with a target price of 41.22 USD based on a 25x PE ratio for 2025 [4][8]. - The expected EPS for 2025 is 11.86 RMB, with a projected growth rate of 27.94% for the following years [6][18].