BTG Hotels(600258) GF SECURITIES·2024-04-29 03:02Investment Rating - The report maintains a "Buy" rating for the company with a target price of 20.50 CNY per share, while the current price is 15.08 CNY [5]. Core Insights - The company reported a Q1 2024 revenue of 1.85 billion CNY, an increase of 11.5% year-on-year, and a net profit attributable to shareholders of 120 million CNY, up 49.8% year-on-year [4]. - The hotel segment shows significant profit recovery, with revenue of 1.64 billion CNY, a year-on-year increase of 11.5%, and a profit of 50 million CNY, up 649.8% [4]. - The company continues to expand its store network, opening 205 new hotels in Q1 2024, with a net increase of 32 hotels, bringing the total to 6,295 [4]. Financial Performance - The company expects net profits attributable to shareholders for 2024, 2025, and 2026 to be 920 million CNY, 1.03 billion CNY, and 1.13 billion CNY respectively, with year-on-year growth rates of 15.2%, 12.6%, and 10.0% [4]. - The report highlights that the company's RevPAR (Revenue per Available Room) for all hotels was 131 CNY, which is stable compared to the previous year [4]. - The company has a total of 1,940 hotels in its pipeline as of Q1 2024, down from 2,035 at the end of 2023 [4]. Strategic Developments - The company is acquiring a 9% stake and debt from its controlling shareholder for 530 million CNY to participate in the construction of a high-end hotel project at the Zhangjiakou Comprehensive Project [4]. - The proportion of mid-to-high-end hotels in the company's portfolio has increased to 28.2% as of Q1 2024, up 0.7 percentage points from the end of 2023 [4].