BTG Hotels(SH:600258) Orient Securities·2024-04-02 16:00Investment Rating - The report maintains a "Buy" rating for the company with a target price of 17.22 CNY [4][7]. Core Insights - The company reported a significant recovery in profitability for 2023, achieving a revenue of 7.793 billion CNY, a year-on-year increase of 53.1%, and a net profit of 795 million CNY, marking a substantial turnaround from losses in the previous year [2][3]. - The recovery in performance is expected to continue, with a focus on the improvement of business travel demand in the upcoming quarters [2][6]. Financial Performance Summary - Revenue: 2023 revenue reached 7,793 million CNY, up from 5,090 million CNY in 2022, reflecting a growth of 53.1% [3]. - Net Profit: The net profit for 2023 was 795 million CNY, compared to a loss of 577 million CNY in 2022, indicating a year-on-year growth of 237.8% [3]. - Earnings Per Share (EPS): EPS for 2023 was 0.71 CNY, recovering from a loss of 0.52 CNY in 2022 [3]. - Gross Margin: The gross margin improved to 38.1% in 2023 from 15.7% in 2022 [3]. - Net Margin: The net margin turned positive at 10.2% in 2023, compared to -11.3% in 2022 [3]. - Return on Equity (ROE): ROE improved to 7.3% in 2023 from -5.3% in 2022 [3]. Future Earnings Forecast - The company is projected to achieve EPS of 0.82 CNY in 2024, 0.92 CNY in 2025, and 1.05 CNY in 2026, reflecting a positive growth trajectory [7][32]. - The target price of 17.22 CNY is based on a 21x PE ratio for comparable companies in 2024 [7].