\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 258 Btg Hotels (Group) Co.Ltd(600258) )
Key investment points
Event: the company released its 2021 annual report. In 2021, the company realized an operating revenue of 615386600 yuan and a net profit attributable to the parent company of 556769 million yuan.
Comments:
The performance is in line with expectations. In 2021, the company achieved a total operating revenue of 6.153 billion yuan, a year-on-year increase of 16.49%; The net profit attributable to the parent company was 56 million yuan, turning losses into profits; The net profit deducted from non parent company was 11 million yuan, turning losses into profits, which was in line with our expectations. Among them, 2021q4 company achieved a revenue of 1.427 billion yuan, a year-on-year decrease of 16.33%; The net profit of non parent company deduction was -83 million yuan. Q4 was greatly affected by the epidemic in China and its performance was under pressure. In the main business in 2021, the operating revenue of hotel business was 5.832 billion yuan, a year-on-year increase of 803 million yuan, accounting for 94.78% of the main business revenue; The operating income of the scenic spot was 321 million yuan, an increase of 68 million yuan year-on-year, accounting for 5.22% of the main business income. Overall, the revenue in 2021 recovered to 74.03% in 2019, and the net profit deducted from non parent company decreased significantly year-on-year.
Speed up the opening of stores against the trend. The company opened 1418 stores in 2021, with a year-on-year increase of 56%, reaching the goal of opening stores in 2021. 184 stores, 325 stores in q1-2021 and 325 stores in TISU gradually opened. Among them, there are 1391 newly opened franchise hotels, which account for 87.3% of the opened hotels. The proportion of hotel management business in the total hotel revenue increased by 2.2 percentage points to 25.3% year-on-year, and the proportion of hotels operating under asset light mode further increased. As of December 31, 2021, the company has opened 5916 hotels, 475124 guest rooms and 1791 reserve stores, which is expected to maintain high-speed expansion.
The proportion of medium and high-end hotels increased. The company has 1384 medium and high-end hotels, accounting for 23.4%, and 150263 guest rooms, accounting for 31.6% of the total guest rooms. Among them, 276 medium and high-end hotels were newly opened in 2021, and the proportion of medium and high-end products in hotel revenue increased from 42.3% in 2020 to 46.9% in 2021, which is expected to further improve the average house price of the company.
Q4 operating data under pressure. In 2021, the overall RevPAR of the first brigade was 119 yuan, with a year-on-year increase of 20.2%, returning to 74.8% in 2019; The average house price was 192 yuan, with a year-on-year increase of 11.6%, returning to 95.8% in 2019; The occupancy rate was 61.8%, with a year-on-year increase of 4.4 percentage points, returning to 82.7% in 2019. Among them, 2021q4 overall RevPAR was 108 yuan, a year-on-year decrease of 17.4%; The average house price was 186 yuan, a year-on-year decrease of 0.4%; The occupancy rate was 57.9%, down 11.9 percentage points year-on-year.
Investment suggestion: during the epidemic period, the company accelerated the opening of stores against the trend, and the proportion of joining medium and high-end hotels gradually increased, which is expected to weaken the impact of the epidemic. It is estimated that the company’s earnings per share from 2022 to 2023 will be 0.53 yuan and 0.91 yuan respectively, and the current share price corresponding to PE will be 45.55 times and 26.32 times respectively, maintaining the “recommended” rating of the company.
Risk tips: intensified industry competition, macroeconomic downturn, industry policy risk, etc.
