JINJIANG HOTELS(SH:600754)2024-04-06 16:00Investment Rating - The report assigns an "OUTPERFORM" rating to the company with a target price of RMB 39.08 [2][4]. Core Insights - The company achieved a revenue of RMB 14.65 billion in 2023, representing a year-on-year increase of 29.53%, and a net profit attributable to shareholders of RMB 1.00 billion, up 691.14% year-on-year [3][9]. - The company exceeded its operational plan by opening 1,407 new stores, with a RevPAR recovery rate of 106.28% compared to 2019 levels [3][10]. - The company plans to open 1,200 new stores in 2024, with projected revenue growth of 5-9% year-on-year [4][11]. Financial Performance Summary - 2023 Financials: Revenue reached RMB 14.65 billion, with a net profit of RMB 1.00 billion. The company turned around its performance with a net profit of RMB 774 million excluding non-recurring items [3][9]. - Quarterly Performance: In Q4 2023, revenue was RMB 3.69 billion, with a net profit of RMB 26.73 million [3][10]. - Future Projections: Expected revenue for 2024 is between RMB 15.4 billion and RMB 16.0 billion, with net profit projected at RMB 1.67 billion [4][11]. Operational Highlights - The company added 1,407 hotels in 2023, surpassing the initial plan of 1,200, with a net increase of 888 hotels [3][9]. - The RevPAR for the full year reached 106.28% of the 2019 level, with quarterly recoveries showing consistent improvement [3][10]. - The overseas revenue grew by 24% to RMB 4.3 billion, although losses in overseas operations increased [10][11]. Earnings Forecast - Revenue is projected to grow to RMB 15.42 billion in 2024, RMB 16.21 billion in 2025, and RMB 17.48 billion in 2026, with net profits expected to reach RMB 1.67 billion, RMB 1.78 billion, and RMB 2.02 billion respectively [4][11].