BTG Hotels(SH:600258) Dongguan Securities·2025-10-30 09:25Investment Rating - The report maintains a "Buy" investment rating for the company [2][5]. Core Views - The company is experiencing a slight decline in RevPAR due to increased competition and a rise in the number of closed stores, which has impacted revenue and net profit growth. However, the ongoing optimization of hotel structure and a focus on mid-to-high-end offerings are expected to enhance profitability in the long term [2][4]. - The company has a substantial number of reserve stores, which is anticipated to support short-term performance growth. The continuous improvement in structure and brand is expected to further enhance profitability [2][4]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved operating revenue of 5.782 billion yuan, a year-on-year decrease of 1.81%. The net profit attributable to shareholders was 755 million yuan, a year-on-year increase of 4.36% [4]. - In Q3 2025, the company reported operating revenue of 2.121 billion yuan, a decrease of 1.6% year-on-year, and a net profit of 358 million yuan, down 2.21% year-on-year [4]. - The company opened 387 new stores in Q3 2025, a 0.5% increase year-on-year, while closing 154 stores, an increase of 42 stores year-on-year [4]. Operational Metrics - The company's RevPAR for all hotels in Q3 2025 was 165 yuan, down 2.8% year-on-year, with an average daily rate (ADR) of 240 yuan, a decrease of 1.7% year-on-year [4]. - The occupancy rate (Occ) was 68.9%, down 0.8 percentage points year-on-year [4]. Structural Optimization - The company continues to optimize its structure, with the proportion of mid-to-high-end hotel rooms increasing to 42.5%, a year-on-year growth of 1.4 percentage points [4]. - The gross profit margin improved by 1.7 percentage points to 44.1% in Q3 2025, driven by the increase in the management business and the optimization of the hotel structure [4]. Earnings Forecast - The projected earnings per share (EPS) for 2025 and 2026 are 0.81 yuan and 0.89 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 17.65 and 16.15 times [2][6].