BTG Hotels(SH:600258) Tianfeng Securities·2024-04-06 16:00Investment Rating - The investment rating for the company is "Buy" with a target price maintained at 14.88 yuan [2]. Core Views - The company achieved a revenue of 7.793 billion yuan in 2023, representing a year-on-year increase of 53%, and a recovery rate of 94% compared to 2019. The net profit attributable to the parent company was 795 million yuan, recovering to 90% of the 2019 level [2]. - The company opened 1,203 new stores in 2023, achieving a target completion rate of approximately 78%, with plans to open 1,200-1,400 new stores in 2024 [3]. - The company is expected to see net profits of 910 million yuan, 1.04 billion yuan, and 1.19 billion yuan for the years 2024 to 2026, with corresponding price-to-earnings ratios of 18x, 15x, and 13x [4]. Revenue and Profitability - In 2023, the company's hotel and scenic area revenues were 5.334 billion yuan and 1.942 billion yuan, respectively, with year-on-year growth of 47% and 51% [12]. - The total profit for 2023 was 1.107 billion yuan, with a tax-preferred profit from hotel operations of 863 million yuan [12]. - The RevPAR (Revenue per Available Room) for Q4 2023 was 138 yuan, recovering to 91% of the 2019 level, with an average daily rate (ADR) of 220 yuan, recovering to 113% of the 2019 level [13]. Store Expansion - The company opened 340 new stores in Q4 2023, with a net increase of 21 stores, while the total number of operating stores reached 6,263, with a 1.0 percentage point increase in the proportion of mid-to-high-end hotels [3]. - The company plans to continue focusing on the mid-to-high-end hotel segment, which accounted for 27.5% of the total number of hotels by the end of Q4 2023 [3]. Financial Forecast - The company is projected to have a net profit of 795 million yuan in 2023, with expectations of continued growth in the following years [4][19]. - The operating cash flow for 2023 was 4.014 billion yuan, reflecting a year-on-year increase of 171% [2].