BTG Hotels(600258) EBSCN·2024-05-07 02:08Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return exceeding 15% over the next 6-12 months [3]. Core Views - The hotel profit recovery is significant, with a strong performance in the first quarter of 2024, driven by the release of travel demand and a low profit base from the previous year [7]. - The company is accelerating its layout of mid-to-high-end hotels, with a notable increase in the proportion of mid-to-high-end hotels in new openings [7]. - The acquisition of a 9% stake in Huanhui Real Estate is aimed at enhancing the company's mid-to-high-end brand system [7]. Summary by Sections Financial Performance - In Q1 2024, the company achieved revenue of 1.845 billion yuan, a year-on-year increase of 11.5%, and a net profit attributable to shareholders of 121 million yuan, up 49.8% year-on-year [7]. - The hotel business generated revenue and profit of 1.639 billion yuan and 52 million yuan, respectively, with year-on-year increases of 11.5% and 649.8% [7]. - The scenic area business reported revenue and profit of 206 million yuan and 121 million yuan, with year-on-year increases of 10.9% and 5.7% [7]. Operational Metrics - The RevPAR (Revenue per Available Room) for all hotels in Q1 2024 was 131 yuan, with an ADR (Average Daily Rate) of 217 yuan and an occupancy rate of 60.1% [7]. - The company opened 205 new hotels in Q1 2024, with a net increase of 32 hotels, and mid-to-high-end hotels accounted for 32.2% of new openings, an increase of 11.2 percentage points year-on-year [7]. Profitability and Cost Management - The gross margin for Q1 2024 was 36.6%, an increase of 5.9 percentage points year-on-year, attributed to optimized operational management and effective market strategies [7]. - The net profit margin for Q1 2024 was 6.5%, up 1.9 percentage points year-on-year [7]. Future Outlook - The report adjusts the net profit forecasts for 2024 and 2025 to 915 million yuan and 1.052 billion yuan, respectively, reflecting a downward revision of 15.2% and 22.4% from previous estimates [7]. - The company is expected to continue its recovery trajectory, with a focus on enhancing its mid-to-high-end hotel offerings [7].