JINJIANG HOTELS(SH:600754) Changjiang Securities·2024-02-26 16:00Investment Rating - The report maintains a "Buy" rating for the company [8]. Core Views - The company's net profit for 2023 is projected to be between 0.95 billion to 1.05 billion CNY, representing a year-on-year increase of 737% to 825% compared to the previous year [2]. - For the fourth quarter, the net profit is expected to range from -0.25 billion to 0.75 billion CNY, with a midpoint of 0.25 billion CNY, which is lower than the previous year's 0.72 billion CNY [2]. - The expected net profits for 2024 and 2025 are 1.4 billion and 1.8 billion CNY, respectively, corresponding to price-to-earnings ratios of 21X and 16X at the current stock price [2]. Summary by Sections Financial Performance - In the first three quarters of 2023, the company reported revenues of 10.962 billion CNY and a net profit of 0.975 billion CNY, reflecting year-on-year increases of 32.71% and 1,783.69%, respectively [5]. - The third quarter alone saw revenues of 4.156 billion CNY and a net profit of 0.452 billion CNY, with year-on-year growth of 33.63% and 169.28% [5]. Operational Insights - The overall RevPAR (Revenue per Available Room) for domestic hotels increased by 46.87% year-on-year in 2023, reaching 106.28% of the 2019 level [6]. - The overseas hotel segment's RevPAR grew by 11.8% year-on-year, achieving 111.4% of the 2019 level [6]. - The company is focusing on improving operational performance through asset disposal, debt restructuring, and enhancing management efficiency [6]. Future Outlook - The company anticipates that its new round of reforms will lead to breakthroughs in brand planning and management efficiency, which will support performance improvement [6]. - The company plans to enhance the quality of its direct-operated stores and steadily expand its franchise stores while upgrading existing locations [6].