SSAW Hotels(SZ:301073) Tianfeng Securities·2024-05-17 08:02Investment Rating - The report maintains a "Buy" rating for the company with a target price not specified [6]. Core Views - The company has shown strong revenue growth, with Q4 2023 revenue reaching 152 million yuan, a year-on-year increase of 61.5%, and a recovery rate of 160% compared to Q4 2019 [3]. - The company's revenue for 2023 was 534 million yuan, up 56.2% year-on-year, with a net profit of 31 million yuan, reflecting a 2.6% increase year-on-year [19]. - The company is expanding its hotel management business, with a significant increase in RevPAR (Revenue per Available Room) and a strong performance in new hotel openings [10][22]. Financial Performance Summary - In Q4 2023, the company achieved a net profit of 7 million yuan, a 71.4% increase year-on-year, with a net cash flow from operating activities of 100 million yuan, up 99.6% year-on-year [3]. - For Q1 2024, the company reported revenue of 160 million yuan, a 67.3% increase year-on-year, with a net profit of 5 million yuan, reflecting a 13.9% increase year-on-year [4]. - The company's direct hotel revenue in 2023 increased by 61.7%, with a RevPAR recovery rate of 116% compared to 2019 [8]. Operational Highlights - The company opened 34 new hotels in 2023, with significant contributions from its three brands: Junlan, Junting, and Jinglan [14]. - The company plans to sign 60 new contracts and open 63 new hotels in 2024 [15]. - The hotel management revenue for 2023 was 117 million yuan, a 39.1% year-on-year increase, with a gross margin of 76.6% [9]. Market Position and Strategy - The company has established a strong market presence, ranking first in China's high-end resort hotel market, and is focusing on strategic partnerships with state-owned enterprises [14]. - The company is expanding its footprint in lower-tier markets, with new signings in Jiangxi, Shandong, Shaanxi, and Ningxia [25]. - The integration of Junting and Junlan is expected to enhance the company's growth trajectory and operational efficiency [25].