\u3000\u3 Jiangsu Eastern Shenghong Co.Ltd(000301) 073 Zhejiang Ssaw Boutique Hotels Co.Ltd(301073) )
Event: Junlan and Jinglan completed the industrial and commercial change, and the “Junlan” trademark submitted an application for transfer. On March 22, the company announced that Zhejiang Junlan Hotel Management Co., Ltd. and Jinglan Hotel Investment Management Co., Ltd. have completed the industrial and commercial change registration procedures, and have obtained the business license renewed by Zhejiang provincial market supervision and Administration Bureau and Hangzhou Shangcheng district market supervision and Administration Bureau respectively. The transfer application of “Junlan” series trademarks has been submitted according to the agreement, and the State Trademark Office is in the process of examination and approval, There are no substantive obstacles to the handling of relevant ownership change procedures.
The merger and acquisition was successfully settled, the organizational structure of the management was straightened out, and the integration was effectively promoted. The company previously issued an announcement on January 22, announcing the acquisition of 79% equity of Zhejiang Junlan Hotel, 70% equity of Jinglan Hotel and “Junlan” series trademarks in cash; And responded to the inquiry of the exchange’s concern letter on February 8. Recently, the company completed the change of the industrial and commercial registration of the subject matter of the M & A, marking the successful conclusion of the M & A, and completed the preliminary integration by reorganizing the organizational structure of Junlan and Jinglan, forming the actual control over Junlan and Jinglan: after the delivery of the subject matter, the legal representative of Junlan is Wu Qiyuan, chairman of Junting; The board of directors is composed of three directors. Junting appoints two directors and Junlan appoints one director; The legal representative of Jinglan is Junting, and the current general manager is Zhu Xiaodong; The board of directors is composed of five directors. Zhejiang Ssaw Boutique Hotels Co.Ltd(301073) appoints three directors and Jinglan appoints two directors. Recently, the company is also promoting the integration of systems and teams: realize the integration of front, middle and back office systems such as PMS, members and reservation network of Junting / Junlan / Jinglan, as well as the integration of development, operation, administration and other teams. Wu Qijun is the founder of the company, and most of the follow-up team of the same source will be able to promote the rapid integration of the company’s business. The main members of the same source team are from the same source team. Wu Qijun is also optimistic about the rapid integration of the company’s business and culture.
Pagoda southwest flagship store is located in Chengdu, establishing high brand potential, and the national layout is carried out in an orderly manner. Today, the southwest flagship store of the company’s pagoda brand opened in Chengdu, the fourth store of the brand in China. The project is located in a prime location adjacent to Chunxi Road Commercial Street / Guojin Center / Chengdu ocean Swire. It is positioned as a high-end selection. In addition to 206 guest rooms, it provides Chinese and Western restaurants / five-star business supporting facilities / composite living space / children’s paradise and other facilities to meet the needs of business travel, leisure, parents and children. According to Ctrip Travel app on March 23, the house price of Chengdu pagoda has been close to or even higher than the leading high-end brands of surrounding international hotels since 720 yuan, establishing a high brand potential and laying a solid foundation for subsequent companies to enter the southwest market.
Investment suggestion: Junting is the target of high-quality hotel focusing on medium and high-end stages and operating efficiently. After the acquisition of Junlan, it broke through the bottleneck of scale and realized multi brand / category layout; Junlan has taken the lead in the scale and growth rate of China’s Resort Hotel track, and has set up points around many tourist destinations nationwide. In the next two years, Junlan will enter the accelerated opening cycle of its projects. The delivery after the acquisition of Junlan / Jinglan has been completed recently, the integration has been continuously promoted, and the southwest flagship store has been opened to further establish high brand potential. It is optimistic that the company’s integration will continue to deepen, expand stores through endogenous and extension, take advantage of the consumption boom of resort hotels and the recovery trend of travel after the epidemic, achieve high performance flexibility, and maintain the “recommended” rating. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 37 million yuan / 89 million yuan / 118 million yuan respectively (excluding the reference performance of the subject matter of M & A), and the corresponding PE will be 118X / 49x / 37x respectively.
Risk tip: the epidemic situation is repeated, the macroeconomic growth rate is lower than expected, the integration is lower than expected, and the expansion of stores is lower than expected
