JINJIANG HOTELS(SH:600754) 光大证券研究·2025-04-09 08:40Core Viewpoint - The company reported a decline in revenue and net profit for the year 2024, indicating challenges in the hospitality sector, particularly in domestic limited-service hotels [3][4]. Group 1: Financial Performance - In 2024, the company achieved a total revenue of 14.06 billion yuan, a decrease of 4.0% year-on-year, and a net profit attributable to shareholders of 911 million yuan, down 9.1% year-on-year [3]. - The fourth quarter of 2024 saw a revenue of 3.273 billion yuan, a decline of 8.5% year-on-year, with a net loss of 195 million yuan [3]. - The gross profit margin for 2024 was 39.5%, down 2.5 percentage points year-on-year, primarily due to the decline in the gross margin of limited-service hotels [6]. Group 2: Hotel Performance - Domestic full-service hotels generated revenue of 238 million yuan in 2024, an increase of 49.6%, driven by store expansion, while the RevPAR was 252.91 yuan, down 10.8% year-on-year [4]. - Limited-service hotels in China reported revenue of 9.33 billion yuan, a decrease of 6.2%, negatively impacting overall revenue [4]. - The RevPAR for domestic limited-service hotels was 157.5 yuan, with occupancy at 65.4% and average daily rate (ADR) at 240.7 yuan, reflecting declines of 5.8%, 0.9 percentage points, and 4.4% respectively [4]. Group 3: Cost Management - The company maintained strict cost control, with a period expense ratio of 31.2% for 2024, down 0.3 percentage points year-on-year [6]. - The sales expense ratio was 7.6%, a decrease of 0.3 percentage points, while the management expense ratio was 18.1%, down 0.6 percentage points year-on-year [6]. - Employee compensation, which significantly impacted both sales and management expenses, decreased by 15.5% and 10.7% respectively in 2024 [6]. Group 4: Expansion Plans - The company exceeded its target by opening 1,515 new hotels in 2024, surpassing the goal of 1,200 [8]. - For 2025, the company plans to accelerate its expansion with a target of opening 1,300 new hotels and signing 2,000 new contracts [8]. - The projected revenue for 2025 is estimated to be between 14.3 billion and 15 billion yuan, representing a growth of 2% to 7% year-on-year, with domestic revenue expected to grow by 5% to 10% [8].