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].

Core Viewpoint - The company reported a slight decline in revenue for the first half of 2025, but a notable increase in net profit, indicating resilience and potential for recovery in the hospitality sector [1][4]. Financial Performance - In 1H25, the company achieved revenue of 3.661 billion yuan, a year-over-year decrease of 1.93%, while net profit attributable to shareholders was 397 million yuan, an increase of 11.08% [1]. - The second quarter of 2025 saw revenue of 1.896 billion yuan, a year-over-year increase of 0.42%, and net profit of 254 million yuan, up 7.37% [1]. - The company's non-recurring net profit for 1H25 was 336 million yuan, reflecting a year-over-year increase of 3.81% [1]. Operational Insights - The hotel and scenic area operational revenue for 1H25 was 3.365 billion yuan and 296 million yuan, respectively, with year-over-year declines of 2.09% and 0.09% [2]. - The overall revenue per available room (RP), average daily rate (ADR), and occupancy rate (OCC) for 2Q25 were 165 yuan, 242 yuan, and 68.2%, showing year-over-year declines of 4.1%, 2.0%, and 1.5 percentage points [2]. - The company opened 664 new stores in 1H25, a year-over-year increase of 17.1%, with a net increase of 266 stores, up 25.5% [3]. Strategic Developments - The company is focusing on the transformation of its core brand, with initiatives like the "Home 4.0" and "Home Business Travel 2.5" products aimed at appealing to younger consumers and enhancing value [1]. - The gross margin for 2Q25 was 41.1%, an increase of 2.6 percentage points year-over-year, driven by a higher proportion of high-margin franchise business revenue [3]. Future Outlook - The company maintains its earnings forecast, projecting EPS of 0.82, 0.92, and 1.05 yuan for 2025-2027 [4]. - A target price of 20.50 yuan is set, based on a 25x PE ratio for 2025, reflecting the company's potential for valuation upside as it resumes expansion [4].

Core Viewpoint - The company reported a slight decline in hotel business revenue for the first half of 2025, while net profit showed an increase, indicating a mixed performance amidst ongoing challenges in the hospitality sector [3][4]. Group 1: Financial Performance - In H1 2025, the company achieved revenue of 3.661 billion yuan, a year-on-year decrease of 1.93%, while net profit attributable to shareholders was 397 million yuan, an increase of 11.08% [3]. - For Q2 2025, revenue reached 1.896 billion yuan, up 0.42% year-on-year, with net profit at 254 million yuan, reflecting a 7.37% increase [3]. - The overall gross margin for H1 2025 was 38.33%, an increase of 0.76 percentage points year-on-year, primarily due to a higher proportion of high-margin hotel management revenue [6]. Group 2: Business Segments - In H1 2025, hotel business revenue was 3.365 billion yuan, down 2.09% year-on-year, while profit totaled 395 million yuan, up 20.53% [4]. - The hotel operation revenue declined by 7.85% due to the closure of underperforming stores and a decrease in RevPAR [4]. - The management business revenue increased by 11.70% due to the expansion of franchise stores [4]. Group 3: RevPAR and Market Dynamics - The RevPAR for all hotels, excluding light management hotels, was 153 yuan, down 4.3% year-on-year, with Q2 showing a smaller decline of 4.1% compared to Q1's 4.6% [5]. - The average room rate for Q2 was 242 yuan, down 2.0%, with an occupancy rate of 68.2%, a decrease of 1.5 percentage points year-on-year [5]. - Economic hotels showed resilience with a RevPAR of 133 yuan, down 2.3%, while mid-to-high-end hotels faced pressure with a RevPAR of 190 yuan, down 7.0% [5]. Group 4: Store Expansion and Structure Optimization - The company opened 664 new stores in H1 2025, a year-on-year increase of 17.1%, with a significant focus on standard management hotels [5]. - The number of mid-to-high-end hotels increased, accounting for 29.3% of total hotels and 42.1% of total rooms by the end of H1 2025 [5]. - The company is focusing on product upgrades and has launched new products like Home 4.0 and Home Business Travel 2.5, which have received positive market feedback [8]. Group 5: Cost Control and Profitability - The company effectively managed costs, with a period expense ratio of 24.02%, down 0.79 percentage points year-on-year [6]. - The net profit margin for H1 2025 was 10.85%, an increase of 1.27 percentage points year-on-year, indicating improved profitability [7].

Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company achieved a stable performance in H1 2025, with a year-on-year improvement in profitability. Revenue for H1 2025 was CNY 3.661 billion, down 1.93% year-on-year, while net profit attributable to shareholders was CNY 397 million, up 11.08% year-on-year [5][7] - The hotel business saw a slight decline in revenue, while the scenic area revenue remained stable. The hotel business generated revenue and profit of CNY 3.365 billion and CNY 395 million, respectively, with a year-on-year decrease of 2.09% in revenue but an increase of 20.53% in profit [5][6] - The company opened 664 new hotels in H1 2025, a year-on-year increase of 17.1%, with a focus on optimizing the store structure [6][8] Summary by Sections Financial Performance - In H1 2025, the overall gross margin was 38.33%, an increase of 0.76 percentage points year-on-year. The net profit margin for H1 2025 was 10.85%, up 1.27 percentage points year-on-year [7][12] - The company’s revenue growth rate is projected to be -0.94% for 2025, with net profit expected to grow by 12.86% [9][10] Revenue Breakdown - The hotel business revenue decreased by 7.85% due to the closure of underperforming stores and a decline in RevPAR, while the hotel management business revenue increased by 11.70% due to the expansion of franchise stores [5][6] - The RevPAR for all hotels, excluding light management hotels, was CNY 153, down 4.3% year-on-year [6] Store Expansion and Structure - The company continues to optimize its store structure, focusing on standard management hotels. As of H1 2025, the total number of hotels reached 7,268, with the proportion of mid-to-high-end hotels increasing to 29.3% [6][8] Profitability and Cost Control - The company has effectively controlled costs, with a decrease in the expense ratio to 24.02%, down 0.79 percentage points year-on-year. The sales expense ratio increased due to higher OTA commissions, while management expenses decreased due to improved cost control [7][12] Future Outlook - The company’s mid-to-high-end brand layout is becoming more complete, and the report expresses optimism about the company's future development prospects, maintaining the "Accumulate" rating [8][9]

Core Viewpoint - The company reported a slight decline in revenue for the first half of 2025, but net profit increased, indicating improved profitability despite challenges in the hotel business [1][3]. Revenue and Profit Summary - In H1 2025, the company achieved revenue of 3.661 billion yuan, a year-on-year decrease of 1.93%, while net profit attributable to shareholders was 397 million yuan, an increase of 11.08% [1]. - In Q2 2025, revenue reached 1.896 billion yuan, a year-on-year increase of 0.42%, with net profit of 254 million yuan, up 7.37% [1]. Business Segment Performance - Hotel business revenue in H1 2025 was 3.365 billion yuan, down 2.09%, but profit increased by 20.53% to 395 million yuan. The decline in revenue was attributed to the closure of underperforming stores and a decrease in RevPAR [1][2]. - The management business benefited from the expansion of franchise stores, with revenue increasing by 11.70% [1]. - Scenic area revenue in H1 2025 was 296 million yuan, with profit totaling 153 million yuan, showing a slight decrease of 0.09% in revenue but a marginal increase in profit of 0.16% [2]. RevPAR and Hotel Operations - The RevPAR for all hotels, excluding light management hotels, was 153 yuan in H1 2025, down 4.3% year-on-year, with Q2 showing a smaller decline of 4.1% compared to Q1 [2]. - The average room rate in Q2 2025 was 242 yuan, down 2.0%, with an occupancy rate of 68.2%, a decrease of 1.5 percentage points [2]. - The company opened 664 new hotels in H1 2025, a year-on-year increase of 17.1%, with a focus on standard management hotels [2]. Profitability and Cost Control - The overall gross margin for H1 2025 was 38.33%, an increase of 0.76 percentage points, driven by a higher proportion of high-margin hotel management revenue [3]. - The company’s expense ratio was 24.02%, down 0.79 percentage points, with notable improvements in management expenses due to enhanced cost control [3]. - The net profit margin for H1 2025 was 10.85%, up 1.27 percentage points year-on-year, indicating effective cost management [3]. Future Outlook and Valuation - The company has slightly adjusted its net profit forecasts for 2025-2027 to 910 million, 1.092 billion, and 1.319 billion yuan, reflecting a cautious outlook on business travel demand recovery [4]. - The company maintains a positive view on its future development prospects, supported by an increasingly complete mid-to-high-end brand layout [4].