\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 754 Shanghai Jin Jiang International Hotels Co.Ltd(600754) )
The company released its annual report for 2021. In 2021, the company achieved a revenue of 11.339 billion yuan, yoy + 14.56%; The net profit attributable to the parent company is 100 million yuan, yoy-8.70%%; The net profit attributable to the parent company was – 122 million yuan, with a year-on-year loss of 548 million yuan. In the fourth quarter of 2021, the company achieved revenue of 2.99 billion yuan, yoy + 3.25%; The net profit attributable to the parent company was 3.8519 million yuan, which was converted from loss to profit. The company’s business has gradually recovered and improved.
Key points supporting rating
The company’s business rebounded steadily, with good growth expectation in 22 years. In 2021, the company’s operation was disturbed by the epidemic and other external factors, but the operation of the company’s limited service-oriented hotels gradually recovered, and the company achieved a revenue of 11.339 billion yuan, yoy + 14.56%. The net profit attributable to the parent company was 100 million yuan, although it decreased by 8.7% year-on-year, which was mainly due to the income obtained by the company from selling the equity of its subsidiaries in 2020. In terms of store expansion, in 2021, the company had a net increase of 1207 hotels, including 13 directly operated hotels and 1220 franchise hotels, accounting for 11.37% of the newly opened hotels in the whole year. In the business plan of the company in 2022, it is estimated that the operating revenue will reach 13.6-14.2 billion yuan, with a year-on-year increase of 20-25%. It is planned to open 1500 new hotels.
Overseas hotels recover quickly, and domestic hotels can recover within a certain period. In 2021, affected by the relaxation of epidemic control measures in major European countries, the market gradually warmed up. OCC, ADR and RevPAR of overseas stores were 46.01%, 54.02 euros and 24.85 euros respectively, yoy + 37.12% / + 53.46% / + 25.25%. The revenue of overseas hotel business was 302 million euros, a year-on-year increase of 28.80%. Affected by the epidemic situation and local Chinese New Year and other prevention and control measures, the recovery speed of domestic hotels is slow. The domestic OCC, ADR and RevPAR are 62.18%, 215.36 yuan and 150.8 yuan respectively, yoy + 72.88% / + 206.92% / – 11.2%. Domestic hotels achieved a revenue of 8.8 billion yuan, yoy + 12.66%. In the 22-year plan, the company expects the revenue of domestic hotels to increase by 9-14% and that of overseas hotels to increase by 65-70%. Referring to the recovery speed of overseas hotels, it is expected that domestic hotels are expected to achieve rapid growth with the improvement of vaccination rate and loose prevention and control measures in China.
Brand matrix helps development, digital transformation enables operation. The company has established a limited service hotel brand matrix, with a total of more than 30 brands. The company has completed the division of “track brand” and “track brand” in 21 years, and actively laid out strategic brands to help the development of the hotel. In addition, the company’s business plan has repeatedly emphasized digital transformation to enable enterprise operation. It is expected that the company will continue to optimize the overall business structure from the “seven scenarios”. In the future, it may help the company reduce costs and increase efficiency.
Valuation
According to the company’s 2021 annual report, we adjusted the company’s EPS for 22-24 years to 0.70/1.84/2.46 yuan, and the corresponding P / E ratio was 70.1/26.8/20.0 times. The epidemic still has an impact on the company’s performance in 2021. The spread of the epidemic in China in 2022 still tests the company’s operating ability, but the domestic hotel business is expected to achieve a rapid recovery after the epidemic improves, and the overseas hotel business is expected to maintain a recovery trend. Considering that the company actively expands its stores and bucks the trend, it is expected to continue to consolidate its leading position in Chinese hotels, so it maintains the overweight rating.
Main risks of rating
There is a risk of repeated outbreaks, the expansion speed does not meet expectations, and the risk of exchange rate changes.
