BTG Hotels(SH:600258) Xinda Securities·2024-04-02 16:00Investment Rating - The investment rating for the company is "Buy" based on the expected performance exceeding the benchmark by more than 15% [20]. Core Views - The company achieved a revenue of 7.793 billion with a year-on-year increase of 53%, and a net profit of 0.795 billion, recovering from a loss of 0.577 billion in the previous year [20]. - The operating cash flow for the year was 0.401 billion, reflecting a significant increase of 170% [20]. - The company's hotel RevPAR (Revenue per Available Room) increased by 58.4% to 154, with an average room price of 235, and an occupancy rate of 65.7% [20]. - The company opened 1,203 new hotels in the year, with a total of 6,263 hotels by the end of the year, indicating strong growth in the hotel segment [20]. Summary by Sections Financial Performance - In 2023, the company reported a total revenue of 7.793 billion, a 53% increase year-on-year, and a net profit of 0.795 billion, recovering from a loss of 0.577 billion in 2022 [20]. - The quarterly breakdown shows Q4 revenue at 1.882 billion, with previous quarters at 1.656 billion, 1.953 billion, and 2.303 billion respectively [20]. Operational Metrics - The RevPAR for all hotels was 154, with a recovery rate of 97.3% compared to 2019 levels, and an average room price increase of 28.2% [20]. - The occupancy rate improved by 12.5 percentage points to 65.7% [20]. Brand and Market Position - The company has over 40% of its hotels under light management, with significant growth in mid-to-high-end hotels over the past four years [20]. - By the end of 2023, the company had a total of 6,263 hotels and 481,503 rooms, with a strong pipeline of 2,035 hotels under development [20]. Investment Outlook - The company is expected to benefit from its light management model, enhancing penetration in lower-tier markets, and the successful development of its high-end hotel offerings [20]. - Forecasted net profits for 2024, 2025, and 2026 are 0.98 billion, 1.142 billion, and 1.160 billion respectively, with corresponding PE ratios of 17, 15, and 14 times based on the closing price on April 3 [20].