JINJIANG HOTELS(SH:600754) Changjiang Securities·2025-11-12 23:30Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Insights - In Q3 2025, the company achieved operating revenue of 3.715 billion yuan, a year-on-year decrease of 4.71%, while the net profit attributable to shareholders was 375 million yuan, a year-on-year increase of 45.45%. The non-recurring net profit attributable to shareholders was 431 million yuan, a year-on-year increase of 72.18% [2][6]. - For the first three quarters of 2025, the company reported operating revenue of 10.241 billion yuan, a year-on-year decrease of 5.09%, and a net profit attributable to shareholders of 746 million yuan, a year-on-year decrease of 32.52%. The non-recurring net profit attributable to shareholders was 840 million yuan, a year-on-year increase of 31.43% [6]. - The company is implementing a reform strategy aimed at enhancing operational efficiency, which includes restructuring its headquarters and reducing the number of regional divisions [2][6]. - The company plans to continue its aggressive expansion strategy, with expectations to open 1,300 new hotels and sign contracts for 2,000 new hotels in 2025 [2][6]. Financial Performance - The company experienced a significant reduction in expense ratios, leading to improved profitability. The overall expense ratio decreased by 5.74 percentage points to 25.35%, resulting in a net profit margin increase of 3.15 percentage points to 10.67% [2][6]. - The gross profit margin for Q3 2025 was 41.69%, reflecting a year-on-year decrease of 2.65 percentage points [2][6]. - The company’s RevPAR (Revenue per Available Room) for full-service hotels and limited-service hotels in China decreased by 4.65% and 1.99% year-on-year, respectively, primarily due to pressure on occupancy rates [2][6]. Future Outlook - The company is optimistic about its long-term brand development strategy, referred to as "12+3+1," which is expected to drive growth [2][6]. - Profit forecasts for the company indicate net profits attributable to shareholders of 953 million yuan, 1.057 billion yuan, and 1.163 billion yuan for 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 24, 22, and 20 times [2][6].