\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 258 Btg Hotels (Group) Co.Ltd(600258) )
Event:
Btg Hotels (Group) Co.Ltd(600258) released the annual report of 2021: the company achieved an operating revenue of 6.153 billion yuan / + 16.49% in 2021; Net profit attributable to parent company: 56 million yuan (2020: 496 million yuan); Deduct the net profit not attributable to the parent company of RMB 11 million (RMB – 527 million in 2020). In 2021q4, the company realized an operating revenue of 1.427 billion yuan / – 16.34%; Net profit attributable to parent company -69 million yuan (59 million yuan in the same period in 2020); Deduction of net profit not attributable to parent company – 82 million yuan (45 million yuan in the same period in 2020).
Key investment points:
Q4 epidemic spread income and profits were under pressure for a short time, but turned losses into profits throughout the year. In 2021, the annual operating revenue was 6.153 billion yuan / + 16.49%; The total profit is RMB 06 million (RMB – 585 million in 2020), and the net profit attributable to the parent company is RMB 56 million (RMB – 496 million in 2020); Deduct the net profit not attributable to the parent company of RMB 11 million (RMB – 527 million in 2020); Among them, the profit loss of hotel business narrowed, with a total profit of – 100 million yuan (2020: – 656 million yuan) and a net profit of – 40 million yuan (2020: – 502 million yuan); The total business profit of the scenic spot is 106 million yuan / + 50.94%, the net profit is 89 million yuan / + 53.45%, and the net profit attributable to the parent is 67 million yuan / + 53.45%. 2021q4: operating revenue of 1.427 billion yuan / – 16.34%; Total profit – 159 million yuan (91 million yuan in the same period in 2020); Net profit attributable to parent company -69 million yuan (59 million yuan in the same period in 2020); Deduction of net profit not attributable to parent company – 82 million yuan (45 million yuan in the same period in 2020).
Q4 recovery was disturbed by repeated outbreaks in North China, which dragged down the recovery process.
In 2021q4, the overall RevPAR of the first trip Home Inns was 108 yuan / – 17.4%, which recovered to 72% in 2019. The OCC was 57.9% / – 11.9pct, which was – 19.6pct year-on-year in 2019. The ADR was 186 yuan / – 0.4%, which was – 4.5% year-on-year in 2019. In 2021, the overall RevPAR of the first trip Home Inns was 119 yuan / + 20.2%, which recovered to 75% in 2019. The OCC was 61.8% / + 4.4pct, which was – 17.3pct year-on-year in 2019, and the ADR was 192 yuan / + 11.6%, which was – 4.2% year-on-year in 2019.
Light management accelerated the expansion of stores, the epidemic hit the willingness to invest, and the net increase of standard stores was under pressure, with medium and high-end as the main force.
1) speed up the opening of stores quarter by quarter. In the four quarters of 2021, the company opened 184, 324, 325 and 585 stores respectively, and the opening of stores continued to accelerate. Among them, in 2021q4, there were 585 newly opened hotels / + 62.1%, a month on month increase of + 80.0%, a net increase of 461 hotels / + 79.4%, and the opening speed (number of stores opened / number of existing hotels in the previous quarter) was 10.7% / + 2.9pct; In 2021, there were 1418 newly opened hotels / + 56.0%, and the goal of expanding 1400 stores was achieved, with a net increase of 1021 hotels / + 129.4%, and the opening speed was 29.0% / + 8.5pct. By the end of 2021, the company had 5916 hotels / + 20.9%.
2) the expansion is still dominated by asset light. In 2021, among the newly opened hotels, there were 27 Direct stores, accounting for 1.90% / -0.85pct; 1391 franchise stores, accounting for 98.10% / + 0.85pct.
3) light management is the main source of expanding stores, and the newly opened standard stores are mainly medium and high-end. In 2021, there were 133 economical hotels / + 20.91%, accounting for 9.28% / – 2.72pct; 276 medium and high-end enterprises / + 1.47%, accounting for 19.46% / – 10.46pct; A total of 409 standard stores are newly opened / + 7.07%, and 954 light management (Huayi + Cloud Hotel) / + 147.15%, accounting for 67.28% / + 24.81pct. Among the net hotels opened, there were 136 economy hotels and 219 medium and high-end hotels / – 0.45%; The total number of standard stores increased by 83 / + 69.39%; 886 light management (Huayi + Cloud Hotel) / + 194.35%, accounting for 86.78% / + 19.14pct.
4) the speed of new stores will be greatly increased. It is planned to open 18002000 new stores in 2022. By the end of 2021, there were 1791 reserve stores, a year-on-year increase of + 46.92%. Among the reserve stores, economy stores account for 17%, medium and high-end stores account for 30%, and light management stores account for 53%. The proportion of medium and high-end stores is higher than that of newly opened stores in 2021. It is planned to open 18002000 new hotels in 2022, accelerate the third to fifth tier sinking market layout, and open stores at a rate of 32.1% / + 3.15pct.
Strictly control internal costs and expenditures, continue to carry out various cost reduction and efficiency enhancement projects, and the cost growth is in line with expectations. In 2021, the company’s operating cost was 4.544 billion yuan / – 1.54%, accounting for 73.85% / – 13.53pct of revenue; The sales expense is RMB 323 million / + 4.12%, and the sales expense rate is 5.25% / – 0.62pct; The management fee is 705 million yuan / + 5.52%, and the management fee rate is 11.46% / – 1.19 PCT; The company increased investment in technology research and development, explored and promoted intelligent technology and smart hotels, and the R & D expenses increased significantly. The R & D expenses were 57 million yuan / + 28.79%, and the R & D expense rate was 0.93% / + 0.09pct; Due to the implementation of the new leasing standards to recognize the financing expenses of leasing liabilities, the interest expense increased significantly compared with the same period of the previous year, the financial expense was 522 million yuan / + 482.91%, and the financial expense rate was 8.48% / + 6.79pct.
Investment rating: from 2022 to 2024, the company is expected to realize an operating revenue of RMB 7.033/82.43/8.976 billion, with a year-on-year increase of 14% / 17% / 9%; The net profit attributable to the parent company was 5.06/10.51/1.790 billion yuan, with a year-on-year increase of 810% / 108% / 70%; The corresponding valuation is 59.48/28.66/16.83xpe. Maintain the “overweight” rating.
Risk tip: China’s epidemic has repeatedly affected travel, the speed of expanding stores is lower than expected, the industry competition is intensified, macroeconomic fluctuations and the improvement of management efficiency are lower than expected.
