JINJIANG HOTELS(600754) 民生证券·2024-05-05 02:00Investment Rating - The report maintains a "Recommended" rating for Jinjiang Hotels, with a current price of 28.91 yuan [2]. Core Views - Jinjiang Hotels' Q1 2024 performance aligns with expectations, showing signs of recovery and optimism regarding future reforms [1]. - The company achieved a revenue of 3.206 billion yuan in Q1 2024, a year-on-year increase of 6.77%, but a decline of 13.3% compared to Q1 2019 [1]. - The net profit attributable to shareholders reached 190 million yuan, up 34.56% year-on-year, recovering to 64.29% of Q1 2019 levels [1]. - The report highlights the impact of rising financial costs due to overseas debt interest rates, which increased significantly [1]. - Domestic operations faced pressure, while overseas operations remained stable [1]. Summary by Sections Financial Performance - In Q1 2024, Jinjiang Hotels reported a gross margin of 35.4%, a decrease of 1.2% year-on-year, with a net profit margin of 5.9%, an increase of 1.4% year-on-year [1]. - The company opened 222 new hotels in Q1 2024, with a net increase of 147 hotels, primarily in the mid-range segment [1]. - The report forecasts net profits for 2024, 2025, and 2026 to be 1.75 billion, 1.92 billion, and 2.09 billion yuan, respectively, with corresponding PE ratios of 18, 16, and 15 times [2][5]. Operational Insights - Domestic limited-service hotel RevPAR was 145.25 yuan, down 1.55% year-on-year, with an average room rate of 242.41 yuan, up 1.3% year-on-year [1]. - The occupancy rate for domestic hotels decreased to 59.92%, down 1.74 percentage points year-on-year [1]. - The overseas limited-service hotel RevPAR was 35.65 euros, stable year-on-year, with an average room rate of 63.37 euros, up 1.62% year-on-year [1]. Future Outlook - The report expresses confidence in the company's operational recovery and the potential for improved quality in operations as brand integration and optimization efforts progress [1]. - The ongoing expansion of the store network and stable contributions from core brands are expected to support future growth [1].