BTG Hotels(SH:600258) Haitong Securities·2024-04-02 16:00Investment Rating - The investment rating for the company is "Outperform the Market" [1] Core Views - The company reported a significant increase in revenue and profitability for 2023, achieving an operating income of 7.793 billion yuan, a year-on-year growth of 53.1%, and a net profit of 795 million yuan, marking a turnaround from losses [3][13] - The recovery in the hotel and scenic area business is strong, with hotel revenue reaching 7.277 billion yuan and scenic area revenue at 516 million yuan, reflecting year-on-year increases of 48.41% and 177.36% respectively [7] - The company is focusing on improving the quality of its hotel openings, with a net increase of 280 stores in 2023, while the proportion of mid-to-high-end hotels continues to rise [3] Financial Performance Summary - For 2023, the company achieved a RevPAR (Revenue per Available Room) of 154 yuan, an increase of 58.4% year-on-year, with an ADR (Average Daily Rate) of 235 yuan, up 28.2% [3] - The company expects to continue its growth trajectory with projected revenues of 8.334 billion yuan in 2024, 8.836 billion yuan in 2025, and 9.573 billion yuan in 2026 [13][27] - The net profit forecast for 2024 is 934 million yuan, with a projected net profit margin of 11.2% [27] Market Position and Strategy - The company is enhancing its product offerings, with a focus on upgrading existing economy hotels and expanding its mid-to-high-end brands [8] - The company has successfully opened 35 hotels under the Yifei brand, covering 16 cities, and has plans for further expansion [8] - The company aims to improve operational efficiency and maintain a lean growth strategy, particularly in its light management hotel segment [3]