BTG Hotels(SH:600258) Soochow Securities·2024-03-27 16:00Investment Rating - The report maintains a "Buy" rating for the company [1][13]. Core Views - The company has shown a significant recovery in revenue and profit levels in 2023, driven by a rebound in travel demand, with total revenue reaching 7.79 billion yuan, a year-on-year increase of 53% [1][12]. - The company plans to accelerate its store openings in 2024, targeting 1,200 to 1,400 new stores, and will continue to innovate and upgrade its membership system [2][12]. - The company is positioned as China's third-largest hotel chain, benefiting from resource integration with its parent group [13]. Financial Performance Summary - Total revenue (in million yuan) for 2022A was 5,090, with projections of 7,793 for 2023A, 7,977 for 2024E, 8,159 for 2025E, and 8,385 for 2026E, reflecting a year-on-year growth of 53.10% in 2023A [1]. - The net profit attributable to shareholders (in million yuan) is projected to be 795.07 for 2023A, with further increases to 910.40 for 2024E, 983.77 for 2025E, and 1,062.57 for 2026E, indicating a year-on-year growth of 237.85% in 2023A [1][13]. - The latest diluted EPS (in yuan per share) is expected to be 0.71 for 2023A, increasing to 0.82 for 2024E, 0.88 for 2025E, and 0.95 for 2026E [1][13]. Cash Flow Summary - Operating cash flow (in million yuan) for 2023A is 4,014, with projections of 3,587 for 2024E, 3,983 for 2025E, and 3,066 for 2026E [8]. - The net increase in cash (in million yuan) is projected to be 179 for 2023A, with significant increases to 1,543 for 2024E, 1,930 for 2025E, and 715 for 2026E [8]. Store Expansion and Market Position - The total number of hotel rooms increased by 3% year-on-year, reaching 6263, with a RevPar recovery to 107% of 2019 levels [17]. - The company opened 1,203 new stores in 2023, with a net increase of 280 stores [17].