BTG Hotels(SH:600258) Dongguan Securities·2025-08-29 09:20Investment Rating - The report maintains a "Buy" investment rating for the company, indicating an expected stock performance that will exceed the market index by more than 15% over the next six months [9]. Core Insights - The company's profit growth is driven by franchise expansion, with a net profit of 397 million yuan in the first half of 2025, representing an 11.08% year-on-year increase, despite a 1.93% decline in revenue to 3.661 billion yuan [6]. - The company opened 664 new stores in the first half of 2025, a 17.1% increase year-on-year, with a significant rise in standard management hotel openings, which increased by 39.5% [6]. - The company’s gross margin improved to 40.4% in Q2 2025, up 2.6 percentage points from the same period in 2024, benefiting from a higher proportion of standard management hotels [6]. - The company is optimizing its structure, with the proportion of mid-to-high-end hotels increasing to 29.3% and their revenue contribution rising to 60.47% [6]. Financial Summary - For 2025, the company is projected to achieve total revenue of 7.901 billion yuan and a net profit of 929 million yuan, with earnings per share expected to be 0.82 yuan [8]. - The company’s price-to-earnings ratio (PE) is projected to be 18.50 for 2025 and 16.57 for 2026, indicating a favorable valuation relative to earnings growth [8].