Investment Rating - The investment rating for the company is "Outperform the Market" [5][3][16] Core Views - The company has shown stable revenue growth in Q3, with a notable increase in non-recurring net profit due to a low base from the previous year. Q3 revenue reached 180 million yuan, a year-on-year increase of 4.06%, while the net profit attributable to shareholders decreased by 19.11% to 3.73 million yuan. The non-recurring net profit increased by 40.08% to 4.27 million yuan [1][8] - The company is focusing on a "light asset" expansion strategy, significantly reducing capital expenditures. As of the end of Q3 2025, the company operated 272 hotels and signed 12 new projects, adding nearly 2,000 rooms. Cash payments for fixed and intangible long-term assets decreased by 73.9% to 28 million yuan [2][10] - The company is pursuing differentiated growth through a combination of light and heavy asset strategies, collaborating with trust institutions to establish industry funds and enhancing its brand presence through partnerships with international hotel giants [2][15] Summary by Sections Financial Performance - In Q3 2025, the company achieved a revenue of 180 million yuan, a 4.06% increase year-on-year. For the first three quarters, total revenue was 506 million yuan, up 0.58% year-on-year. However, the net profit attributable to shareholders for the first three quarters decreased by 45.92% to 10 million yuan [1][8] - The company's RevPAR (Revenue per Available Room) for Q3 decreased by 3.32% year-on-year, with occupancy rates increasing by 4.97 percentage points but average daily rates dropping by 10.2% [1][10] Strategic Initiatives - The company is deepening its "light asset" strategy, with a significant reduction in capital expenditures. The number of hotels under operation is 272, with 211 hotels in the pipeline. The company aims to alleviate the profit drag from new store ramp-up periods through asset management platforms and strategic partnerships [2][15] - The company has established exclusive franchise rights for the COMFORT and QUALITY brands in mainland China, enhancing its ability to attract inbound tourists [2][15] Earnings Forecast - The earnings forecast for 2025-2027 has been adjusted, with net profit estimates revised down to 15 million yuan, 46 million yuan, and 86 million yuan respectively. The dynamic PE ratios for these years are projected at 274, 91, and 49 times [3][16][17]