\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 754 Shanghai Jin Jiang International Hotels Co.Ltd(600754) )
Key investment points
The company issued the annual report for 21 years: 1) the whole year: the company achieved revenue of 11.339 billion yuan / + 14.56% in 21 years, with a year-on-year increase of – 24.9% in 19 years; The net profit attributable to the parent company was 101 million yuan / – 8.7%, and the decline in performance was mainly due to the investment income obtained by the company from selling the equity of its subsidiaries in the past 20 years; The net profit deducted from non parent company was – 122 million yuan, with a loss of 670 million yuan in the same period of 20 years, which was greatly reduced. 2) 21q4: the company achieved a revenue of 2.99 billion yuan / + 3.26% in the fourth quarter, and the net profit attributable to the parent was 3.85 million yuan / + 102.02%. Deducting the net profit not attributable to the parent was 77.37 million yuan, which was in line with the expectation, and a loss of 265 million yuan in the same period of 20 years. 3) Net operating cash flow: the hotel operation has gradually improved. In the whole year of 21, the company generated net operating cash flow of 2.069 billion yuan, a year-on-year increase of + 1264%. 4) Dividend: cash dividend (tax included) of 0.053 yuan per share of A-Shares shall be paid by converting B shares into US dollars.
In terms of business: Q4’s domestic performance profit is 90 million yuan, and the loss of overseas Louvre Q4 is more than 40 million euros. In 21 years, the hotel business achieved a total revenue of 11.090 billion yuan / + 14.94%, and the net profit of the hotel business was a loss of 900000 yuan, a decrease of 102.49% over the same period last year, mainly due to the investment income obtained from the sale of the equity of the subsidiary in the same period of 20 years. The catering business achieved a revenue of 250 million yuan / + 0.03%, and a net profit of 200 million yuan.
1) domestic hotel business: ① in the whole year of 21, the domestic hotel business achieved a revenue of 8.8 billion yuan / + 12.66%, a performance of 444 million yuan / – 48.97%, and a performance of 366 million yuan after deduction, an increase of 413 million yuan compared with 20 years. ② Single
In the fourth quarter, the net profit attributable to the parent company of domestic hotels was about 90 million yuan.
2) overseas hotel business: ① in the past 21 years, the overseas hotel business has significantly reduced its losses, strengthened cost control and sought government subsidies. In the whole year of 21, the overseas hotel business achieved a revenue of 2.290 billion yuan / + 24.63%, with an annual loss of 58.11 million euros (about 440 million yuan), a decrease of 47.4 million euros compared with the same period of the previous year; ② In the fourth quarter alone, the loss of Louvre was about 11.8 million euros (equivalent to about 90 million yuan), about 42.6 million euros less than that of 20q4.
Operating conditions: the annual RevPAR in China recovered to 87.45% in the same period of 19 years, and it improved significantly abroad. Q4revpar recovered to 81.57% in the same period of 19 years.
① the recovery rate of domestic companies was over 90.87% from March to may, and the recovery rate of domestic companies was over 98.45% from March to may, respectively. However, since the end of July, the spread of the epidemic in many places has disturbed the recovery trend of hotels, but when the epidemic is relatively improved, the demand of hotels will be released immediately. ② In terms of classification, the RevPAR recovery degree of China’s mid-range hotels in the whole year was 82.46%, slightly better than 78.1% of economy hotels. ③ From the price performance, the ADR of Chinese hotels in the whole year was 213.5 yuan, a slight increase of 1.4% compared with 210.6 yuan in 19 years. ④ In the fourth quarter alone, domestic RevPAR recovered to 86.36% in the same period of 19 years.
2) Louvre: the operation of Louvre has improved significantly year-on-year. The epidemic situation in European countries has been controlled to a certain extent since 21q2. Since the end of June, the epidemic prevention and control measures have been gradually relaxed to remove, and the overseas hotel market has warmed up. Throughout the year, the RevPAR of the Louvre Hotel recovered to 66.96% in the same period of 19 years, of which the RevPAR of Q4 Louvre Hotel recovered to 81.57% in the same period of 19 years.
3) same store: the RevPAR of domestic hotels of the company recovered to 83.0% in 19 years, ADR decreased by 3.13% compared with 19 years, and OCC decreased by 10.78% compared with the same period in 19 years.
In the whole year, the company opened 1207 stores, and the number of pipeline hotels was 4760; It is estimated that 1500 newly opened hotels and 2500 newly contracted stores will be added in the whole year of 22 years.
1) overall opening of 1207 stores: in 2021, the company opened 1763 stores, of which 239 were withdrawn from business, 317 were transferred from business to preparation, and the overall net opening of 1207 stores, including 1217 in China. By the end of the 21st century, the company had 4760 pipeline hotels.
2) continue to optimize the proportion of medium and high-end hotels: in the whole year of 21, the company opened 1095 middle-end hotels, accounting for 90.72%, including 177, 112 and 447 in Lifeng, Xi’an and Vienna series respectively; There are 112 economy hotels, of which 74 are Magnolia. By the end of the 21st century, the company’s medium and high-end hotels accounted for 51.98%, an increase of 4.97 PCT over the end of the 20th.
3) the proportion of light assets has been further increased: in the past 21 years, 13 direct hotels have been closed and 1220 franchise stores have been opened.
4) store opening guidelines: in 22 years, the company plans to add 1500 hotels and 2500 contracted stores, which is consistent with the store opening plan in 21 years. In 21 years, especially since the second half of the year, affected by the spread of the epidemic, the company has opened 1207 stores in the whole year. However, considering that the company’s goal of opening stores has not changed, the number of stores this year is expected to increase year-on-year.
The company’s management rate was -2.73pct year-on-year, of which the general administrative rate of the hotel division decreased slightly by 0.23pct compared with 20 years. 1) The overall cost rate of the company during the 21-year period is 33.22% / -0.69pct, including sales rate of 7.82% / + 1PCT, management rate of 20.47% / -2.73pc and financial rate of 4.77% / + 1.14pct. 2) Considering the limited service hotel segment alone, the company’s sales and marketing expenses account for 8.09% / + 2.73pct, which is mainly due to the increase of the company’s Commission (or related to the increase of the company’s development team) and advertising expenses. The efficiency improvement of the middle and back offices has made slight achievements. The general administrative expense rate in 21 years was 13.31%, a decrease of 0.23 PCT compared with 20 years and 19 years. The increase in financial expenses is mainly due to the fixed increase completed by the company in 21 years and the implementation of the new leasing standards.
In the past 21 years, the company’s product competitiveness has continued to be consolidated and the digital transformation has been promoted. After the former CFO takes over as CEO, the company is expected to continue to accelerate the construction of one center and three platforms and the improvement of the efficiency of the middle and back office. 1) Product side: the company has continued to improve the bottom competitiveness of its products for 21 years. Its 30 + brands are divided according to track + track, and the market-oriented competition mechanism fully stimulates the vitality of the brand.
2) Promotion of digital transformation: in the past 21 years, the company has continuously promoted the construction progress of digital hotels. At the same time, in the digital transformation of direct selling, the number of members has reached 182 million by the end of 21, an increase of 2351 compared with the end of 20, which is expected to further drive the improvement of the company’s direct selling rate; 3) business guideline: it is expected that the operating income will be 136142 billion yuan in 2022, an increase of 20%-25% over the previous year, and the operating income from Chinese mainland is expected to grow by 9%-14% over the same period last year. Operating income from Chinese mainland is expected to grow by 65%-70% over the same period. In 22 years, the company plans to add 1500 hotels and 2500 contracted stores. 4) Personnel adjustment: the company issued the announcement of the resolution of the board of directors and will appoint Ms. Shen Li, the former CFO, as the CEO of the company. Mr. Zhu Qian, the former CEO, will serve as the dual department director of Jinjiang International Investment and development department and strategic development research office to continue to enable the development of the company. At the same time, Ms. Shen Li has been the CFO of the company since July 16. She has been responsible for the integration of internal finance, procurement and other platforms of the system, and led part of the background of the company to complete a series of digital construction and transformation. In the future, she is expected to continue to lead the company to improve internal efficiency while developing with high quality.
Profit forecast: the company’s net profit attributable to the parent company in 22-24 years is expected to be RMB 829 / 18.98 / 2.275 billion respectively, with growth rates of + 724% / + 129% / + 20% respectively. The current share price corresponds to 27x PE in 23 years, and continues to be optimistic about the growth space of the company.
Risk tip: China’s covid-19 epidemic situation is repeated, macroeconomic fluctuations, expansion speed is lower than expected, industry competition intensifies, and overseas business recovery is lower than expected
