Investment Rating - The report maintains a "Buy" rating for Shoulu Hotel (600258) with a target price based on the last closing price of 15.35 [1][10]. Core Views - Shoulu Hotel's performance has shown resilience with revenue growth despite industry challenges, driven by accelerated store openings and a focus on high-margin hotel management services [4][5][10]. - The company has opened 664 new hotels in the first half of 2025, a significant increase from 567 in the same period of 2024, indicating a strong expansion strategy [6][10]. - The report forecasts a steady increase in net profit for the years 2025 to 2027, with expected growth rates of 10.14%, 10.77%, and 9.63% respectively [10][11]. Summary by Sections Financial Performance - For the first half of 2025, Shoulu Hotel reported revenue of 3.661 billion yuan, a slight decrease of 1.93% year-on-year, while net profit increased by 11.08% to 397 million yuan [4][10]. - The hotel management segment saw revenue growth of 11.7%, contributing to 30.89% of total revenue, while hotel operations experienced a decline of 7.85% [5][8]. Operational Metrics - The average daily room rate (ADR) for Q2 2025 was 242 yuan, down 2% year-on-year, with an occupancy rate of 68.2%, a decrease of 1.5 percentage points [7][10]. - The company has a total of 7,268 hotels as of the first half of 2025, with 2,132 being mid-to-high-end hotels, representing 29.3% of the total [6][9]. Future Projections - The report projects revenues of 8.061 billion yuan for 2025, with a growth rate of 4% [11]. - Earnings per share (EPS) are expected to be 0.8 yuan in 2025, with corresponding price-to-earnings (PE) ratios of 19x, 17x, and 16x for the years 2025 to 2027 [10][11].

Group 1 - The company's Q1 revenue reached 1.77 billion, a year-over-year decrease of 4%, while net profit attributable to shareholders was 140 million, an increase of 18% year-over-year, exceeding expectations [1] - Q1 gross margin was 35.4%, up 1.2 percentage points year-over-year; selling expense ratio was 7.9%, down 0.4 percentage points; management expense ratio was 13.0%, down 0.4 percentage points; financial expense ratio was 4.1%, down 1.1 percentage points [1] - The net profit margin was 8.1%, an increase of 1.6 percentage points year-over-year [1] Group 2 - The company opened 300 new stores in Q1, compared to 206 in the same period last year; net new stores were 82, up from 32 year-over-year; the proportion of standard stores among new openings increased to 64%, up 14 percentage points year-over-year [1] - As of the end of Q1, the total number of stores reached 7,084, a year-over-year increase of 13%; room count reached 523,000, up 8% year-over-year; the pipeline consists of 1,719 stores, with plans to open 1,500 new stores in 2025 [1] Group 3 - The average RevPAR in Q1 was 124 yuan, a year-over-year decrease of 5.3%, with a declining trend compared to the previous quarter; occupancy rate was 58.3%, down 1.8 percentage points year-over-year, and ADR was 212 yuan, down 2.5% year-over-year [1] - Same-store RevPAR for mature stores was 125 yuan, a year-over-year decrease of 8.5%; average RevPAR excluding light management decreased by 4.6% year-over-year [1] Group 4 - The company is the third-largest hotel chain in China, backed by Shoulu Group, and continues to optimize development and operations, accelerating store openings and structural upgrades [2] - The profit forecast for 2025-2027 remains unchanged, with net profits attributable to shareholders projected at 910 million, 990 million, and 1.06 billion respectively, corresponding to PE valuations of 18, 17, and 16 times for 2025-2027 [2]