BTG Hotels(SH:600258) Guotai Junan Securities·2024-04-01 16:00Investment Rating - The report assigns a rating of "Accumulate" for the company [4][14]. Core Views - The company's performance in 2023 met expectations, with significant improvements in store expansion contributing to incremental growth. Future profitability from investments is expected to be more certain [4][14]. - The target price has been adjusted to 20.25, down from a previous forecast of 23.25, reflecting a market average PE of 25x [4][14]. - The company achieved a revenue of 77.93 billion in 2023, representing a 53.1% increase compared to the previous year, with a net profit of 795 million [4][14]. Financial Summary - Revenue for 2022 was 5,090 million, increasing to 7,793 million in 2023, with an estimated 8,034 million for 2024 [4][14]. - The company reported an EBIT of 1,490 million in 2023, a significant recovery from a loss of 233 million in 2022 [4][14]. - The net profit attributable to shareholders was 795 million in 2023, compared to a loss of 577 million in 2022 [4][14]. Performance Metrics - The company’s operating profit margin is projected to be 19.1% in 2023, improving from -4.6% in 2022 [4][14]. - The return on equity (ROE) is expected to rise to 7.1% in 2023, compared to -5.5% in 2022 [4][14]. - The return on invested capital (ROIC) is forecasted to be 10.4% in 2023, up from -2.0% in 2022 [4][14]. Market Position - The company operates a leading hotel group in China, focusing on mid-range and high-end hotel investments and operations, with a notable increase in the number of core brand hotels [4][14]. - The RevPAR (Revenue per Available Room) has recovered to 97.3% in 2023, indicating a strong rebound in the hospitality sector [4][14].