\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 258 Btg Hotels (Group) Co.Ltd(600258) )
The company issued the annual report of 2021. The year-on-year net profit of the parent company was + 5.65 billion yuan, with a year-on-year net profit of + 5.65 billion yuan. Q4 achieved a revenue of 1.427 billion yuan, a year-on-year increase of – 16.32%, and a net profit attributable to the parent company of – 69 million yuan, a year-on-year increase of – 217.61%. Turn losses into profits throughout the year.
Key points supporting rating
Quality and efficiency indicators have improved, and there is still room for performance restoration. The company achieved a revenue of 6.153 billion yuan, yoy + 16.49%, and a net profit attributable to the parent company of 56 million yuan, a year-on-year increase of 552 million yuan. The occupancy rate / average house price / RevPAR in 21 years were 61.8% / 192 yuan / 119 yuan respectively, with a year-on-year increase of + 4.4pct / + 11.6% / + 20.2%; 21q4 occupancy rate / average room price / RevPAR were 57.9% / 186 yuan / 108 yuan respectively, with a year-on-year increase of -11.9pct / – 0.4% / – 17.4%. The overall business situation has improved. The RevPAR of Q3 Rujia hotel has exceeded the pre epidemic level, but with the upgrading of Q4 epidemic prevention and control, the short-term performance is temporarily under pressure. In the long run, the large-scale expansion and fixed increase of 3 billion yuan may effectively help the company improve its risk response ability, and the recovery logic of 22 years will not change.
Steadily expand the middle and high-end stores and sink the market at the same time. In 21 years, 1418 new stores (1021 net) were opened, and the number of new stores in Q1-Q4 was 184 / 324 / 325 / 585 respectively, showing a continuous increasing trend in each quarter, including 27 / 1391 New Direct stores / franchise stores and 133 / 276 / 954 / 55 new economical / medium and high-end / light management / other hotels. The proportion of medium and high-end increased by 8.2%, and the rapid development is expected to improve profitability; The light management hotels represented by cloud hotel are constantly enriched, accounting for 67%. At the same time, the newly launched Huayi brand is rapidly sinking. It is planned to open 18002000 new stores in 22 years. At present, there are 1791 reserve stores. Under the condition of large-scale development, the company has a solid foundation and broad incremental space.
Digital construction will reduce costs and increase efficiency, develop members and broaden their own channels. The company optimized the digital construction, and the R & D cost was + 27.94% year-on-year. The full digital coverage of hotel operation analysis is expected to help improve the operation efficiency, while the intelligent scene improves the guest experience. As of the end of the reporting period, the number of members of the company had reached 133 million, with a year-on-year increase of + 6.4%. In 21 years, the company launched “such as life club” and “first free global purchase”. The dual engines work together to enable the value of members and provide 230 + value-added services other than accommodation. With the improvement of the size of members and the improvement of services, the channel innovation ability of the company is expected to continue to improve.
Valuation
According to the annual report and the current epidemic situation in China, we adjusted the EPS for 22-24 years to 0.59/1.03/1.25 yuan, and the corresponding P / E ratio was 38.6/22.3/18.3 times. The chain process of the hotel industry has accelerated. The company adheres to asset light and rapid expansion of stores. At the same time, it consolidates the flow and technical barriers through digitization. The profit has improved well in 21 years. On the premise that the epidemic situation is under control, the rapid recovery can be expected in the future. Therefore, the company maintains the buy rating.
Main risks of rating
Regional economic recovery, structural differences, peer channel and brand competition, covid-19 epidemic recurrence risk.
