\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 258 Btg Hotels (Group) Co.Ltd(600258) )
Main points:
Events
The company released its annual report for 2021. In 2021, it achieved a revenue of 6.153 billion yuan (+ 16.49%), a net profit attributable to the parent company of 56 million yuan (+ 111.23%), a net profit not attributable to the parent company of 11 million yuan (+ 102.08%), and a basic earnings per share of 0.06 yuan.
The epidemic situation has repeatedly recovered and slowed down, and the hotel management business has improved significantly
In 2021, the revenue reached 6.153 billion yuan (+ 16.49%), of which the revenue growth of 2021q1-q4 was 58.75%, 69.69%, – 5.38% and – 16.32% respectively, mainly because the epidemic prevention and control situation improved in the first half of the year, the overall recovery trend of the hotel industry was obvious, especially the Q2 China epidemic was controlled, the number of travelers increased significantly, and the company’s operation improved significantly; The local outbreak of the epidemic in the second half of the year led to business pressure and negative revenue growth. In terms of business, (1) hotel business: in 2021, the revenue of hotel business was 5.832 billion yuan (+ 15.97%), of which the revenue of hotel operation business was 4.359 billion yuan (+ 12.71%), mainly because the decrease in the number of directly operated hotels partially offset the rise of RevPAR; The revenue of hotel management business was 1.473 billion yuan (+ 26.85%), mainly due to the rise of RevPAR of franchised hotels and the increase in the number of stores; (2) Business of scenic spots: the business revenue of scenic spots in 2021 was 321 million yuan (+ 26.86%), mainly due to the relief of the epidemic and the increase of ticket revenue.
Digital empowerment, cost reduction and efficiency increase, and profitability improvement
The company’s gross profit margin in 2021 was 26.15% (+ 13.53pct), mainly because the company improved the efficiency of hotel development and operation and reduced the ratio of people to rooms through digital technology; Vigorously promote energy-saving equipment and strengthen energy consumption control. The net interest rate of the company in 2021 was 0.16% (+ 10.22pct), and the profitability was improved. In terms of expense ratio, (1) the sales expense ratio was 5.24% (-0.63pct), mainly because ① the proportion of self owned channels increased: in 2021, the company improved the membership through all channels and multi scenarios such as mobile download, store card sales and agreement cooperation. By the end of 2021, the total number of members had reached 133 million (+ 6.4%). The proportion of online orders of the company continued to increase, and the number of nights occupied by Q4’s own channels accounted for 75.7%. ② Digital marketing: Based on the huge membership system, the company has established a CRM system to achieve accurate member portraits and full scene touch of members online / offline, launch personalized marketing schemes and improve marketing efficiency. (2) The management expense rate was 12.38% (- 1.11 PCT), mainly because the company further improved the management efficiency through the transformation and optimization of organizational process and the application of digital and online technology.
RevPAR gradually recovers, and economy hotels perform better
Overall caliber: in 2021, the company’s overall RevPAR was 119 yuan (+ 20.2%), recovering to 74.8% in 2019, of which economic / medium and high-end / cloud hotels recovered to 76.0%, 68.7% and 69.4% in 2019 respectively; ADR is 192 yuan (+ 11.6%), recovering to 95.8% in 2019; OCC was 61.8% (+ 4.4pct), 17.3 PCT lower than that in 2019. Same store caliber: in 2021, the RevPAR of the same store (opened for more than 18 months) was 120 yuan, with a year-on-year increase of 17.5%, ADR was 190 yuan, with a year-on-year increase of 9.2%, OCC was 63.3%, with a year-on-year increase of 4.4pct. Compared with 2019, RevPAR decreased by 26.3%, ADR decreased by 6.9% and OCC decreased by 16.7 PCT.
Speed up asset light exhibition stores, focusing on medium and high-end and cloud hotels
By the end of 2021, the company had 5916 hotels (including one overseas). In 2021, the company opened 1418 new hotels (+ 56.0%). Quarter by quarter, 184 stores were opened in Q1, 324 stores in Q2, 325 stores in Q3 and 585 stores in Q4, showing an accelerated state of opening. In terms of expansion mode, the company mainly focuses on franchise. 1391 franchise stores were added in 2021, accounting for 98.1%. By the end of 2021, franchise stores accounted for 87.3% (+ 3.4pct). In terms of store structure, the company opened 276 medium and high-end hotels in 2021. By the end of 2021, the company’s medium and high-end hotels accounted for 23.4%, and the number of rooms in medium and high-end hotels accounted for 31.6% (+ 1.9pct). In 2021, the company opened 954 light management hotels (+ 24.8%), accounting for 67.3% of the newly opened stores. Among them, in 2021, the cloud brand opened 550 new hotels, accounting for 38.8% of the total number of new hotels, and continued to maintain rapid expansion. In order to further enrich the light management mode, the company’s newly launched Huayi brand has made rapid efforts to sink the market. In 2021, Huayi opened 404 new hotels, accounting for 28.5% of the total number of new stores, an increase of 24.5% over the same period last year, showing a good development trend. In terms of reserve stores, by the end of 2021, the company had 1791 reserve stores, laying a solid foundation for the development of new stores in 2022.
Investment advice
Under the influence of the epidemic, the chain rate has increased, and the leading advantage of the hotel has been highlighted. The company accelerated the expansion of stores and laid out medium and high-end hotels. At the same time, it launched cloud hotels to deeply cultivate and sink the market and develop small and medium-sized single hotels. With the weakening of the impact of the epidemic, the demand is expected to recover in an all-round way. The proportion of direct sales of the company is relatively high, and the performance elasticity can be restored in a reasonable period. We expect that the company’s EPS from 2022 to 2024 will be 0.43, 0.77 and 0.92 yuan / share respectively, corresponding to 53, 30 and 25 times of the current share price PE respectively. Maintain the “buy” rating.
Risk tips
The epidemic repeatedly affected the recovery of demand, and the speed of expanding stores was lower than expected
