Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 16.8 yuan [2][8]. Core Insights - The company has shown marginal improvement in operations and continuous enhancement in asset quality. The overall revenue for Q3 2025 was 2.12 billion yuan, a year-over-year decrease of 1.6%, while the net profit attributable to the parent company was 360 million yuan, down 2.21% year-over-year [8]. - For the first three quarters of 2025, the company achieved a cumulative revenue of 5.782 billion yuan, a decrease of 1.81% year-over-year, and a net profit of 755 million yuan, an increase of 4.36% year-over-year [8]. - The report highlights that the operating metrics have shown resilience, with an overall occupancy rate (OCC) of 68.9%, down 0.8 percentage points year-over-year, and an average daily rate (ADR) of 240 yuan per room, down 1.7% year-over-year [8]. - The company continues to push for asset-light operations, with 387 new stores opened in Q3 2025, of which 383 were franchise stores, indicating a shift towards a standard management model [8]. Financial Summary - The company’s total revenue is projected to be 7.751 billion yuan in 2024, decreasing to 7.628 billion yuan in 2025, before increasing to 7.893 billion yuan in 2026 and 8.089 billion yuan in 2027 [4]. - The net profit attributable to the parent company is expected to grow from 806 million yuan in 2024 to 889 million yuan in 2025, reaching 980 million yuan in 2026 and 1.072 billion yuan in 2027, reflecting a growth rate of 10.3% in 2025 [4]. - The report indicates a slight increase in expense ratios, with a gross margin of 44.8% in Q3 2025, up 1.7 percentage points year-over-year [8].