JINJIANG HOTELS(SH:600754)2024-02-04 16:00Investment Rating - The report maintains an "Accumulate" rating for the company [1][4] Core Views - The company is expected to achieve a significant year-on-year increase in net profit for 2023, with estimates ranging from RMB 9.50 billion to RMB 10.50 billion, representing an increase of RMB 8.37 billion to RMB 9.37 billion compared to 2022 [4] - The recovery in hotel operations is anticipated to be driven by the release of business travel demand, with RevPAR showing a notable recovery [4] - The company has undergone management changes and is focusing on digital transformation and internal structure optimization to enhance operational capabilities and profit release [4] Summary by Sections Financial Performance - The company forecasts a net profit of RMB 9.50 to 10.50 billion for 2023, with a significant increase from the previous year [4] - The expected net profit for Q4 2023 is projected to be between RMB -0.25 billion and RMB 0.75 billion, indicating a slight decline compared to the same period last year [4] - The company anticipates a non-GAAP net profit of RMB 7.40 to 8.40 billion for 2023, up from the previous year's figures [4] RevPAR Recovery - Domestic hotel RevPAR is expected to grow by 46.87% year-on-year, surpassing pre-pandemic levels [4] - The quarterly growth rates for RevPAR are projected at 41.31%, 56.63%, 40.02%, and 51.05% for Q1 to Q4 respectively, compared to 2019 levels [4] - International hotel RevPAR is expected to increase by 11.8% year-on-year, with quarterly growth rates of 37.46%, 13.91%, 5.17%, and 0.82% [4] Future Outlook - The company is expected to enhance its operational management capabilities, which will contribute to profit growth [4] - The EPS forecasts for 2023, 2024, and 2025 are adjusted to RMB 0.94, RMB 1.42, and RMB 1.84 respectively, with corresponding P/E ratios of 26.1, 17.3, and 13.4 [4][5]