收入增长平稳，境外利息拖累业绩

Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 37.24 CNY per share, indicating an expected strong performance relative to the market over the next 12 months [4][19]. Core Views - The company reported a revenue of 3.21 billion CNY for Q1 2024, representing a year-on-year increase of 6.8% but a decrease of 3.9% compared to Q1 2019. The net profit attributable to shareholders was 190 million CNY, up 34.6% year-on-year but down 35.7% from Q1 2019. The non-recurring net profit was 60 million CNY, down 31.2% year-on-year and down 12.0% from Q1 2019. The decline in non-recurring profit is attributed to increased interest expenses due to rising interbank lending rates in euros [2][3]. - The company is seeing operational efficiency improvements, leading to a decrease in management expense ratio to 33.1%, with specific changes in sales, management, financial, and R&D expense ratios [2]. - Room rates continue to rise, with occupancy rates showing potential for recovery. Domestic limited-service hotels reported a RevPAR of 145 CNY, down 1.6% year-on-year, while ADR increased by 1.3% year-on-year to 242 CNY. The occupancy rate was 60%, down 2.1 percentage points year-on-year. For overseas hotels, RevPAR was 36 EUR, down 0.1% year-on-year, with ADR increasing by 1.6% year-on-year to 63 EUR [2]. - The company is steadily advancing its signing and store expansion, opening 222 new hotels in Q1 2024, bringing the total to 12,595 hotels. The number of signed hotels reached 16,701, an increase of 46 from the end of 2023 [2]. - Profit forecasts for the company are optimistic, with expected net profits of 1.59 billion CNY, 1.78 billion CNY, and 1.97 billion CNY for 2024, 2025, and 2026 respectively, reflecting growth rates of 59.1%, 11.8%, and 10.6% [2][3]. Financial Summary - The company reported a revenue of 11.31 billion CNY in 2022, with a significant increase to 14.65 billion CNY in 2023, and projected revenues of 15.67 billion CNY, 16.61 billion CNY, and 17.57 billion CNY for 2024, 2025, and 2026 respectively, indicating a growth rate of 7.0%, 6.0%, and 5.8% [3][16]. - The net profit attributable to shareholders was 127 million CNY in 2022, surging to 1.00 billion CNY in 2023, with projections of 1.59 billion CNY, 1.78 billion CNY, and 1.97 billion CNY for the following years, showcasing a remarkable growth trajectory [3][16]. - The company's earnings per share (EPS) is expected to rise from 0.12 CNY in 2022 to 0.94 CNY in 2023, and further to 1.49 CNY, 1.67 CNY, and 1.84 CNY in the subsequent years [3][16].