JINJIANG HOTELS(600754) 中泰证券·2024-04-30 08:30Investment Rating - The report maintains a "Buy" rating for Jinjiang Hotels (600754 SH) [2] Core Views - Jinjiang Hotels' Q1 2024 non-GAAP net profit was under pressure due to high overseas interest expenses caused by Eurozone rate hikes and weak business travel demand recovery [2] - The company's internal reforms since late 2023, including leadership changes, are expected to enhance its long-term competitiveness, but the implementation and performance release need to be monitored [2] - The report adjusted downward the 2024-2025 net profit forecasts to 15 8/18 0 billion yuan from previous estimates of 18 2/23 4 billion yuan, reflecting conservative assumptions about RevPAR recovery and expenses [2] Financial Performance - Q1 2024 revenue reached 3 21 billion yuan, up 6 8% YoY, while net profit attributable to parent company was 189 million yuan, up 34 6% YoY [2] - The company's 2024E revenue is projected at 14 98 billion yuan, with a YoY growth of 2 3%, and net profit attributable to parent company is expected to reach 1 58 billion yuan, up 57 6% YoY [2] - EPS is forecasted to grow from 0 94 yuan in 2023A to 1 48 yuan in 2024E [2] Operational Highlights - Q1 2024 RevPAR in the Chinese mainland market declined by 1 5% YoY, with occupancy rate (OCC) down 2 8% and average daily rate (ADR) up 1 3% [2] - The company's overseas interest expenses increased significantly, leading to higher financial costs in Q1 2024 compared to 2023 [2] Strategic Developments - Jinjiang Hotels has undergone significant organizational restructuring since late 2023, with Wang Wei appointed as CEO of Jinjiang Hotels China [2] - The company is focusing on localization, expanding mid-to-high-end and resort brands, and enhancing membership benefits as part of its strategic deployment [2] Valuation Metrics - The company's P E ratio is expected to decrease from 30 8 in 2023A to 19 5 in 2024E [2] - ROE is projected to improve from 5 8% in 2023A to 8 4% in 2024E [2]