\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 258 Btg Hotels (Group) Co.Ltd(600258) )
Event: in 2021, the company achieved a revenue of 6.15 billion yuan, an increase of 16.5%, a net profit attributable to the parent company of 55.677 million yuan, a year-on-year turnaround, and a net profit of 10.946 million yuan after deduction of non profits, a year-on-year turnaround. It is proposed to distribute a cash dividend of RMB 0.026 per share, totaling RMB 29.156 million, accounting for 52.4% of the net profit attributable to the parent company.
Comments:
Expand and speed up, and light management is dominant. In the 21st year, 1418 new stores were opened, achieving the annual opening target (1400 ~ 1600), including 276 medium and high-end hotels (accounting for 19.5%) and 954 light management hotels (accounting for 67.3%). There are 585 new stores in Q4 company, 184 / 324 / 325 in Q1 / Q2 / Q3, increasing quarter by quarter. By the end of the 21st century, there were 1791 reserve stores, including only 20 Direct stores, and the rest were franchised stores. The light management mode accounted for a high proportion, laying a solid foundation for the development of new stores in 22 years. In the next 22 years, the speed of opening stores will be accelerated, and 1800 ~ 2000 new hotels are planned.
RevPAR recovered to 75% before the epidemic. In 21 years, the RevPAR of all hotels was 119 yuan, an increase of 20.2% at the same time, returning to 74.8% in the same period in 19 years, mainly due to the double increase of ADR and occupancy rate; ADR increased by 11.6% and the occupancy rate increased by 4.4pct. 21q4, RevPAR of all hotels was 108 yuan, with a decrease of 17.4%, mainly due to the sharp decline in the rental rate; ADR decreased by 0.4% and the occupancy rate decreased by 11.9pct.
The proportion of hotel management revenue increased. In the 21st year, the revenue reached 6.15 billion yuan, an increase of 16.5%, of which the hotel management revenue reached 1.47 billion yuan, an increase of 26.8%, accounting for 2.2pct to 25.3% of the total hotel revenue, and the asset light continued to deepen.
The improvement of operation has brought about a significant increase in gross profit margin. Gross profit margin increased significantly by 13.5pct to 26.1%. Among them, the gross profit margin of hotel operation increased by 15.6pct to 6.6%, and the gross profit margin of hotel management increased by 1.6pct to 76.8%.
Due to the implementation of the new leasing standards, the financial expense rate has increased significantly. The rate of administrative expenses decreased by 1.2pct to 11.5%; The sales expense rate increased by 0.6pct to 5.2% at the same time; The R & D expense rate will be reduced by 0.1pct to 0.9% at the same time; Financial expenses increased by 6.8pct to 8.5% at the same time, mainly due to the implementation of the new lease standards and the provision of interest on lease liabilities of 430 million yuan.
Profits turned around losses. With the improvement of the epidemic situation and the improvement of business data, the company’s performance rebounded. In 21 years, the net profit attributable to the parent company was 55.677 million yuan, which was significantly reduced compared with – 530 million in 20 years.
Profit forecast and investment rating: the performance has turned around in 21 years, the speed of expanding stores has reached a record high, there are enough reserve stores, and the goal of expanding stores in 22 years has been improved again. The supply and demand pattern of the hotel industry has improved significantly, and the leading concentration has increased, which is expected to fully benefit from the repair of the epidemic. It is estimated that the company’s EPS from 2022 to 24 will be 0.55/0.82/1.07 yuan / share respectively, and the corresponding PE of the current stock price is 43x / 29x / 22x, maintaining the “buy” rating.
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.
