Investment Rating - The report maintains an "Accumulate" rating for the company [1][5]. Core Views - The company has shown resilience in revenue and profit despite market demand pressures, with a focus on optimizing management capabilities [3][5]. - The hotel market is experiencing a decline in demand, particularly in business travel, which has impacted revenue slightly [8]. Financial Performance Summary - For Q3 2025, the company reported revenue of RMB 3.715 billion, a decrease of 4.71% year-on-year, while net profit attributable to shareholders was RMB 375 million, an increase of 45.45% year-on-year [3][8]. - Year-to-date revenue for the first three quarters of 2025 was RMB 10.241 billion, down 5.09% year-on-year, with a net profit of RMB 746 million, down 32.52% year-on-year [8]. - The company’s RevPAR (Revenue per Available Room) showed a slight decrease, with domestic full-service hotels experiencing a revenue increase of 5.76% and overseas limited-service hotels declining by 23.34% [8]. Future Earnings Projections - The company’s EPS (Earnings Per Share) is projected to be RMB 0.91, RMB 1.07, and RMB 1.27 for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 24.9, 21.0, and 17.7 [5][7]. - The company aims to open 1,300 new hotels in 2025, achieving a completion rate of 78.15% with 1,016 hotels opened in the first three quarters [8].

Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company reported a revenue of 10.241 billion yuan for the first three quarters of 2025, a year-on-year decrease of 5.1%, while the net profit attributable to the parent company was 746 million yuan, down 32.5% year-on-year. However, the net profit excluding non-recurring items increased by 31.4% to 840 million yuan [4] - In Q3 2025, the company achieved a revenue of 3.715 billion yuan, a decrease of 4.7% year-on-year, but the net profit attributable to the parent company rose by 45.5% to 375 million yuan, and the net profit excluding non-recurring items increased by 72.2% to 431 million yuan [4][5] - The decline in RevPAR (Revenue per Available Room) for domestic limited-service hotels narrowed to 2.0% in Q3 2025, compared to 5.0% in Q2 and 5.31% in Q1, indicating a continuous recovery trend [5] - The company has a five-year capital expenditure plan totaling 480 million euros for overseas hotel renovations and digital upgrades, which is expected to improve long-term operational performance [6] Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported a revenue of 10.241 billion yuan, down 5.1% year-on-year, and a net profit of 746 million yuan, down 32.5% year-on-year. The net profit excluding non-recurring items was 840 million yuan, up 31.4% [4] - In Q3 2025, the company achieved a revenue of 3.715 billion yuan, down 4.7% year-on-year, with a net profit of 375 million yuan, up 45.5% year-on-year [4] RevPAR and Hotel Performance - The RevPAR for domestic limited-service hotels in Q3 2025 was 170.94 yuan, down 2.0% year-on-year, showing improvement from previous quarters [5] - The average room rate for limited-service hotels increased by 3.1% year-on-year, while the average occupancy rate decreased by 3.6 percentage points [5] Cost Management and Profitability - The company's gross margin in Q3 2025 was 41.7%, down 2.6 percentage points year-on-year, while the net profit margin reached 10.1%, up 3.5 percentage points year-on-year [6] - The company has effectively controlled expenses, with a decrease in selling, administrative, and financial expense ratios [6] Expansion and Future Outlook - The company opened 343 new hotels in Q3 2025, with a net increase of 212 hotels, moving towards its goal of adding 1,300 new hotels in 2025 [7] - The report projects a downward adjustment in net profit forecasts for 2025-2027, with expected net profits of 841 million yuan, 1.132 billion yuan, and 1.357 billion yuan respectively [7][8]

Summary of the Conference Call on Atour Hotel Industry Company Overview - **Company**: Atour Hotel - **Industry**: Hotel Industry Key Points and Arguments Store Opening and Closing Plans - Atour Hotel expects to reach approximately 2,050 stores by the end of 2025, with plans to open 100-105 new stores in Q4 2025, aiming for nearly 500 new openings for the entire year [1][2][3] - As of Q3 2025, Atour has opened a total of 1,970 stores, with 146 new openings in Q3 alone, marking a quarterly high [2] - The company has closed 41 stores so far in 2025, with an expected total closure of 70-80 stores for the year, indicating better-than-expected operational performance [4][10] Revenue Per Available Room (RevPAR) and Market Performance - RevPAR showed a slight decline in July and August 2025, with July at 366 RMB and August at 396 RMB, reflecting a year-on-year decrease [7][8] - In September, RevPAR dropped to 300 RMB, down approximately 3.2% year-on-year, attributed to the end of summer traffic and insufficient business flow [9] - During the National Day holiday, RevPAR increased, primarily driven by Average Daily Rate (ADR) [13] Market Conditions and Competitive Landscape - The hotel industry is experiencing intense competition, which has led to actual performance falling short of initial budget expectations [10] - The company has adopted a conservative approach in its 2025 budget, based on 2024 benchmarks, but is still striving to meet its targets despite market challenges [10] Membership Growth and Retail Performance - Atour's membership base grew rapidly, adding 8.5 million members in Q3 2025, although the number of effective members has slightly decreased [3][25] - The retail segment has seen significant growth, with a record online sales performance during the 618 shopping festival, driven by new product launches and increased repurchase rates [19][21] Future Outlook and Strategic Planning - For 2026, Atour aims for a growth target of at least 1.5%, with plans to finalize the budget by late November or early December [15][16] - The company has a pipeline of 787 store projects as of Q3 2025, indicating ongoing expansion efforts [17] Marketing and Sales Strategies - Atour is optimistic about its marketing strategies for the upcoming Double Eleven shopping festival, having prepared in advance to capitalize on potential revenue opportunities [22][23] - The company is leveraging synergies between its retail and hotel businesses, enhancing customer experience and driving sales through cross-promotional strategies [24] Regional Performance Insights - Post-holiday performance in East China remained stable compared to the previous year, with expectations of increased demand due to upcoming large events [14] Additional Important Information - The average daily rate (ADR) in August 2025 was 460 RMB, down 3% from the previous year, while occupancy rates increased to 86% [9] - The company has implemented a traffic light system for internal assessments based on budget performance, which may impact employee incentives [11][12]

Group 1 - The core viewpoint of the report is a "buy" rating for Shoulu Hotel (600258.SH) based on strong revenue growth in hotel management and stable income from scenic spots [1] - Hotel management continues to show a high revenue growth rate, while scenic area income remains flat year-on-year [1] - The company plans to open 664 new hotels in the first half of 2025, an increase from 567 in the first half of 2024, indicating an acceleration in expansion [1] - Operating data for Q2 2025 continues to face pressure, suggesting potential challenges ahead [1] - Both gross margin and net margin are improving, with further optimization on the expense side [1] - The company is accelerating the upgrade and iteration of existing hotels, continuously optimizing the store opening structure [1]