SSAW Hotels(SZ:301073) Minsheng Securities·2024-04-26 14:00Investment Rating - The report maintains a "Recommended" rating for the company [1][2]. Core Views - The company has shown a strong recovery in operations, with significant growth in revenue and profitability. The revenue for 2023 reached 534 million, a year-on-year increase of 56.2%, while the net profit attributable to shareholders was 31 million, up 2.6% year-on-year [1][10]. - The company has successfully expanded its store network, signing 55 new projects in 2023, which includes 12 for the Junting brand, 27 for the Junlan brand, and 16 for the Jinglan brand. This brings the total number of stores to 217, with 176 more in the pipeline [1]. - Strategic cooperation with China Travel Hotel has enhanced the company's membership system, allowing for resource sharing and improved market competitiveness [1]. Financial Performance - For 2023, the company achieved a gross profit margin of 39.7%, an increase of 3.7 percentage points year-on-year. The gross profit margin for Q1 2024 was 30.1%, a decrease of 2.9 percentage points year-on-year [1]. - The average occupancy rate for Junting's direct-operated stores reached 67.85% in 2023, a year-on-year increase of 13.77 percentage points. The average daily rate (ADR) was 490.46 yuan, up 22.26% year-on-year [1]. - The company forecasts net profits of 130 million, 200 million, and 320 million for 2024, 2025, and 2026 respectively, with corresponding PE ratios of 41x, 26x, and 16x [1][10].