\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 754 Shanghai Jin Jiang International Hotels Co.Ltd(600754) )
Event: the company released its 2021 annual report. In 2021, the company achieved a total operating revenue of 11.339 billion yuan, an increase of 14.56% over the same period of last year.
Comments:
The performance recovery was slightly lower than expected. In 2021, the company achieved a total operating revenue of 11.339 billion yuan, a year-on-year increase of 14.56%; The net profit attributable to the parent company was 100 million yuan, a year-on-year decrease of 8.70%; The net profit deducted from non parent company was -122 million yuan, with a year-on-year loss of 548 million yuan. Affected by the epidemic, it was lower than the company’s performance guidance in 2021. Among them, 2021q4 company achieved a revenue of 2.990 billion yuan, a year-on-year increase of 3.26%; The net profit deducted from non parent company was – 77 million yuan, with a year-on-year loss of 187 million yuan. In the main business in 2021, the operation and management business of limited service hotels achieved a revenue of RMB 11.090 billion, a year-on-year increase of 14.94%, accounting for 97.8% of the main business revenue; The food and catering business achieved a revenue of 249 million yuan, a year-on-year increase of 0.03%, accounting for 2.2% of the main business revenue. On the whole, the revenue in 2021 recovered to 75.1% of that in 2019, and the net profit deducted from non parent company decreased significantly year-on-year. It is expected to return to profitability in 2022.
Overseas hotel business was the first to recover. In 2021, the company achieved an operating revenue of 8.8 billion yuan in China, a year-on-year increase of 12.66%; Chinese mainland achieved 2 billion 290 million yuan of revenue from overseas, up by 24.63% over the same period last year, and overseas hotels benefited from the first relaxation of epidemic prevention policies by European countries in 2021. Chinese mainland accounts for 79.35% of the revenue of the hotel business, accounting for 20.65% of overseas revenue and a small increase in the proportion of overseas hotels.
The number of newly opened hotels maintained a high level. By the end of 2021, the company had opened 10613 hotels in total. Among them, there were 9692 franchise stores, accounting for 91.32% of the number of hotels opened, 921 Direct stores, accounting for 8.68% of the number of hotels opened, and the proportion of franchise hotels increased by 1.25 percentage points compared with the previous year. From 2018 to 2021, the net number of newly opened hotels was 749, 1071, 892 and 1207 respectively, and the number of newly opened hotels maintained a high level. By the end of 2021, the company still had 4760 contracted reserve stores. It is expected to maintain a fast speed of opening new stores in 2022 and further expand its scale advantage.
Q4 epidemic suppresses RevPAR. 2021Q4, the average price, average rental rate and average RevPAR of the hotels in the Chinese mainland and the Econo Hotel are 215.36 yuan, 62.18% yuan, 133.91 yuan, respectively, compared with +4.08%, -14.68% and -11.2% respectively. In the second half of 2021, disturbed by the scattered epidemic in China, the occupancy rate and RevPAR decreased slightly. However, among the hotels opened by the company, the middle-end hotels accounted for 51.98%, supporting a slight rise in the average house price.
Investment suggestion: the company is the largest hotel group in China and the second in the world. It has a high speed of opening new stores and sufficient contracted reserve stores. It is estimated that the company’s earnings per share from 2022 to 2023 will be 0.90 yuan and 1.84 yuan respectively, and the corresponding PE of the current stock price will be 53.21 times and 26.16 times respectively, maintaining the “recommended” rating of the company.
Risk tips: intensified industry competition, macroeconomic downturn, industry policy risk, etc.
