BTG Hotels(SH:600258) Minsheng Securities·2024-04-06 16:00Investment Rating - The report maintains a "Recommended" rating for the company [19] Core Insights - The company achieved a total revenue of 7.793 billion RMB in 2023, representing a year-on-year increase of 53.12%, and a profit of 1.107 billion RMB, with a net profit attributable to shareholders of 795 million RMB, marking a turnaround from losses [1] - The hotel market is experiencing a sustained recovery, with significant improvements in operating performance, as evidenced by a RevPAR increase of 58.4% year-on-year for all hotels [1] - The company is focusing on expanding its mid-to-high-end offerings and optimizing its structure through a light management model, opening 1,203 new hotels in 2023, a 36.86% increase from the previous year [1] - The company is enhancing its membership, service, and technology systems, with a total membership of 151 million by the end of 2023, a 9.42% increase year-on-year [1] - The company is expected to continue benefiting from the hotel market recovery, with projected net profits of 900 million RMB, 1 billion RMB, and 1.1 billion RMB for 2024, 2025, and 2026 respectively, corresponding to PE ratios of 18x, 17x, and 15x [1] Financial Performance Summary - In 2023, the company reported total revenue of 7,793 million RMB, with a growth rate of 53.1% [12] - The net profit attributable to shareholders for 2023 was 795 million RMB, reflecting a growth rate of 237.8% [12] - The company’s earnings per share for 2023 was 0.71 RMB, with projected increases to 0.81 RMB in 2024 and 0.90 RMB in 2025 [12] - The company’s total assets were 25.24 billion RMB in 2023, with a projected increase to 26.16 billion RMB in 2024 [20]