\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 754 Shanghai Jin Jiang International Hotels Co.Ltd(600754) )
Shanghai Jin Jiang International Hotels Co.Ltd(600754) released the 2021 annual report: ① in 2021, the company achieved revenue of 11.339 billion yuan / yoy + 14.6% (compared with – 24.9% in the same period in 2019), net profit attributable to parent company of 101 million yuan / yoy-8.7% (compared with – 90.8% in the same period in 2019), net profit deducted from non attributable to parent company of – 120 million yuan / compared with – 670 million yuan in the same period last year. ② 21q4 company achieved a revenue of 2.99 billion yuan / yoy + 3.3%, and a net profit attributable to the parent company of 3.852 million yuan / year-on-year turnaround (compared with the same period in 2019 – 198.0%). ③ the net cash inflow from the company’s operating activities in 2021 was 2.07 billion yuan, an increase of 1264.4% over the same period last year. The company expects to achieve a revenue of 136142 billion yuan in 2022, an increase of 20%-25% over the previous year, and the revenue from Chinese mainland is expected to grow by 9%-14% compared to the same period last year. Overseas operating revenue is expected to increase by 65% – 70% year-on-year.
The domestic occupancy rate was dragged down by the epidemic, and overseas operations recovered significantly. ① Domestic full caliber: 2021q4revpar is 133.9 yuan / yoy-11.2% (compared with the same period in 2019 – 13.6%), the average house price is 215.4 yuan / yoy + 4.1% (compared with the same period in 2019 + 1.6%), and the occupancy rate is 62.2% / yoy-10.7pct (compared with the same period in 2019 – 11.2pct); Affected by the epidemic, business data are under pressure. ② Overseas full caliber: 2021q3 full caliber RevPAR is 29.6 euros / yoy + 77.8% (compared with – 18.4% in the same period in 2019), the average house price is 55.9 euros / yoy + 14.77% (compared with – 2.8% in the same period in 2019), and the occupancy rate is 52.92% / yoy + 18.8pct (compared with – 10.1pct in the same period in 2019). Overseas operations recovered further than Q3.
The steady expansion of stores continued to be strong, and the cost reduction and efficiency increase began to highlight. In 2021, the company’s management expense reached 2.32 billion, with a management expense rate of 20.5% / yoy-2.7pct, a significant decrease compared with the management expense rate of 27.7% / 27.0% in 2018 / 2019. In terms of the management expense of limited service hotels, the company’s management expense in 2021 was 1.47 billion. Although it increased compared with 1.31 billion in 2020, the management expense rate was 13.3%, a year-on-year decrease of 0.2pct, reflecting the progress of cost reduction and efficiency increase after integration. In terms of store opening: 1207 stores will be opened in 2021 (1763 stores opened / 239 stores exited / 317 stores converted from opening to preparation). Among them, there are 112 / 1095 economic / medium and high-end stores, 13 / 1220 direct / franchise stores, and the store structure continues to upgrade.
Adjust the CEO’s personnel appointment, CFO to the front of the stage, and promote the further release of the effectiveness of background integration. According to the company’s announcement, former CEO Zhu Qian stepped down as CEO, and the board of directors appointed former CFO Shen Li as CEO. Shen Li has worked in the internal financial system of Jinjiang system for more than 30 years. She has served as Shanghai Jin Jiang International Hotels Co.Ltd(600754) chief financial officer and financial director since July 2016. We believe that Shen Li’s appointment as CFO reflects the company’s subsequent strategic direction of deepening integration, which is expected to further reduce costs and increase efficiency and further release performance.
Investment suggestion: with the launch of covid-19 new diagnosis and treatment scheme, China’s control measures are expected to ease and promote the recovery of travel demand; Superimposed on the historical de supply of hotel stock, the supply and demand pattern of the hotel industry has been significantly optimized in the post epidemic era, and a new business cycle is about to start. Rich brand resources in Jinjiang; At present, the integration is accelerating, the platform effect is prominent, the expense rate is expected to improve and release the profit space. Considering the short-term impact of the epidemic on the company’s performance, the 22-year profit forecast is lowered. It is estimated that the net profit attributable to the parent company in 202224 will be RMB 1.23/21.8/2.56 billion respectively, and the corresponding PE will be 43x / 24 / 21x respectively, maintaining the “recommended” rating.
Risk tip: the epidemic situation is at risk of recurrence, the progress of vaccination / specific drugs is less than expected, and the expansion of stores is less than expected.
