\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 754 Shanghai Jin Jiang International Hotels Co.Ltd(600754) )
Event: the company released its annual report for 21 years, which realized a revenue of 11.34 billion yuan, an increase of 14.6% at the same time, a net profit attributable to the parent of 100 million yuan, a decrease of 8.7% at the same time, a net profit of – 120 million yuan after deduction of non-profit and a year-on-year loss of 550 million yuan. It is proposed to pay a cash dividend of RMB 0.53 per 10 shares.
Comments:
The epidemic expanded rapidly against the trend. In the past 21 years, there were 1763 newly opened hotels, with a net increase of 1207 hotels (a net increase of 892 in 20 years), including 13 directly operated hotels and 1220 franchise hotels, deepening the asset light model. By the end of the 21st century, a total of 10600 hotels had opened, an increase of 12.8%, and the number of hotel rooms opened reached 1019000, an increase of 10.9%. The contracted scale was further improved. By the end of the year, the contracted hotel scale had reached 15400, an increase of 6.3% at the same time, laying the foundation for subsequent expansion.
RevPAR of Continental Hotels recovered to 87.5% in 19 years. Chinese mainland RevPAR reached 137.5 yuan, an increase of 15.3%, and returned to 87.5% in the same period of 19 years, mainly due to the double increase of ADR and rental rate. ADR increased by 8.7% and the occupancy rate increased by 3.7pct. Overseas RevPAR reached 24.9 euros, an increase of 25.3% over the same period, returning to 67.0% in the same period in 19 years, mainly due to the increase of rental rate; Overseas ADR increased by 1.0% and the occupancy rate increased by 8.9pct.
Income has increased steadily. In the past 21 years, the company achieved revenue of 11.34 billion yuan, an increase of 14.6%, and the limited service hotel business achieved revenue of 11.09 billion yuan, an increase of 14.9%. Among them, the Chinese mainland achieved 8 billion 800 million yuan in revenue, an increase of 12.7%, and an overseas income of 2 billion 290 million yuan, an increase of 24.6%. The revenue of direct hotels reached 5.9 billion yuan, an increase of 13.1% and that of franchise hotels reached 4.73 billion yuan, an increase of 14.6%.
Gross profit margin increased significantly. The gross profit margin increased significantly by 8.5pct to 34.3%. In terms of business types, the gross profit margin of operation and management business of limited service hotels increased by 8.7pct to 34.7%. According to the regional perspective, the gross domestic product rate of Chinese mainland hotels is 9.4pct to 36.6%.
During the period, the cost rate was well controlled. The rate of administrative expenses decreased by 2.7pct to 20.5%, the rate of sales expenses increased by 1.0pct to 7.8%, the rate of R & D expenses decreased by 0.1pct to 0.2%, and the financial expenses increased by 1.1pct to 4.8%.
After deducting non profits, the net profit decreased significantly. The company realized a net profit attributable to the parent company of RMB 100 million, a decrease of 8.7% at the same time, while the net profit after deducting non recurring profit decreased significantly year-on-year, mainly because the non recurring profit and loss reached RMB 780 million in 20 years, while it was only RMB 220 million in 21 years. The net interest rate increased by 0.2pct to 2.6%.
Profit forecast and investment rating: the company’s performance is in line with expectations. Under the background of repeated epidemics, it still expanded rapidly against the trend, and the RevPAR of the whole year returned to nearly 90% in the same period of 19 years. The supply and demand pattern of the hotel industry has improved significantly, the concentration of leaders has further improved, and the performance is expected to recover rapidly after the epidemic situation improves. It is estimated that the company’s EPS from 2022 to 24 will be 0.75 yuan, 1.12 yuan and 1.45 yuan / share respectively, and the corresponding PE of the current stock price is 66x / 44x / 34x, maintaining the rating of “overweight”.
Risk factors: the risk of repeated epidemic affecting the tourism industry, the risk of macroeconomic downturn, the risk of expansion speed, the risk of rising operating costs, and the risk of franchise store management.
