BTG Hotels(SH:600258) Minsheng Securities·2024-04-29 16:00Investment Rating - The report maintains a "Recommended" rating for the company [6][3]. Core Views - The company achieved a revenue of 1.845 billion yuan in Q1 2024, representing a year-on-year increase of 11.47%, driven by the recovery of the travel market and scale growth [3]. - The hotel business showed strong profit recovery, with a total revenue of 1.639 billion yuan, up 11.54% year-on-year, and a profit margin significantly improved [3]. - The company is focusing on optimizing its hotel product structure and expanding its mid-to-high-end hotel offerings, with a 50% year-on-year increase in new mid-to-high-end hotel openings in Q1 2024 [3]. - The company is expected to continue benefiting from the recovery of the hotel market, with projected net profits of 1.017 billion yuan, 1.138 billion yuan, and 1.249 billion yuan for 2024, 2025, and 2026 respectively [3]. Financial Performance Summary - Total revenue for 2023 was 7.793 billion yuan, with projected revenues of 8.602 billion yuan, 9.148 billion yuan, and 9.542 billion yuan for 2024, 2025, and 2026 respectively, indicating a growth rate of 53.1% for 2023 [2][10]. - The net profit attributable to shareholders for 2023 was 795 million yuan, with projections of 1.017 billion yuan, 1.138 billion yuan, and 1.249 billion yuan for the following years, reflecting a growth rate of 237.8% for 2023 [2][10]. - The company's earnings per share (EPS) for 2023 was 0.71 yuan, with forecasts of 0.91 yuan, 1.02 yuan, and 1.12 yuan for the next three years [2][10]. - The price-to-earnings (PE) ratio is projected to decrease from 22 in 2023 to 14 by 2026, indicating an improving valuation [2][10].