BTG Hotels(SH:600258) HTSC·2025-10-30 06:39Investment Rating - The investment rating for the company is maintained at "Buy" [6] Core Views - The company reported a revenue of 5.782 billion RMB for Q1-Q3, a year-on-year decrease of 1.8%, while the net profit attributable to the parent company was 755 million RMB, an increase of 4.4% year-on-year [1][6] - The company is experiencing pressure on revenue per available room (RP), but the decline is narrowing compared to the previous quarter, indicating resilience in the hotel operations [2][3] - The company is focusing on long-term growth by transforming its core brand to appeal to younger consumers and enhancing product offerings, which is expected to revitalize its growth trajectory [1][2] Revenue and Profitability - For Q3, the company achieved a revenue of 2.121 billion RMB, down 1.6% year-on-year, with a net profit of 358 million RMB, down 2.2% year-on-year [1][2] - The adjusted net profit for Q3 was 340 million RMB, reflecting a year-on-year increase of 0.6%, with a net profit margin of 16.0%, up 0.4 percentage points year-on-year [1][2] Market Performance - The overall RP for the company in Q3 was 191 RMB, a decrease of 2.4% year-on-year, while the average daily rate (ADR) was 259 RMB, down 2.0% year-on-year [2] - The occupancy rate (OCC) stood at 73.6%, a slight decrease of 0.3 percentage points year-on-year [2] Expansion and Store Management - As of Q3, the company had a total of 7,501 stores, with economic and mid-to-high-end hotels accounting for 26.9% and 29.6% of the total, respectively [3] - The company opened 387 new stores in Q3, a year-on-year increase of 0.5%, with a net addition of 233 stores, down 14.7% year-on-year [3] Financial Forecast and Valuation - The net profit forecast for the company has been adjusted to 858 million RMB, 980 million RMB, and 1.094 billion RMB for the years 2025, 2026, and 2027, respectively [4] - The target price has been adjusted to 17.07 RMB, based on a price-to-earnings (PE) ratio of 22.2 times for 2025 [4]