\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 754 Shanghai Jin Jiang International Hotels Co.Ltd(600754) )
Annual report comments
The company issued a performance announcement in 2021. In 2021, the company realized an operating revenue of 11.339 billion yuan / + 14.56%; The net profit attributable to the parent company is 101 million yuan / – 8.70%; Deduct non net profit of -122 million yuan (2020: – 670 million yuan).
Repeated outbreaks put pressure on the company’s performance. (1) Revenue side: in 2021, the revenue of food and catering business was 249 million yuan / – 0.02%, and that of hotel business was 11.09 billion yuan / + 14.94%. The revenue of domestic hotels is 8.8 billion yuan / + 12.66%, of which the early service fee income is 812 million yuan / + 9.72%, and the continuous franchise fee income is 3.549 billion yuan / + 25.72%; The revenue of overseas hotels is 2.290 billion yuan / + 24.66%. (2) Profit side: in 2021, the net profit attributable to the parent company of food and catering business was 200 million yuan / – 21.0%, that of domestic hotels was 440 million yuan / – 49.0%, and that of overseas hotels was – 58.11 million euros (- 440 million yuan).
ADR in China has exceeded the 19-year level, and RevPAR has been gradually repaired. In 2021, the company’s RevPAR in China was 137.6 yuan / + 15.3%, which recovered to 87.5% in the same period in 2019; OCC was 64.4% / + 3.7pct, a year-on-year increase of – 10.3pct; ADR was 213.5 yuan / + 8.7%, a year-on-year increase of + 1.4%. In 2021, the RevPAR of China’s mid-range and economy hotels recovered to 82.5% / 78.1% in 2019 respectively. The recovery of mid-range hotels was faster, and the proportion of mid-range hotels increased by 4.97pct compared with 2020, further increasing the RevPAR. Overseas RevPAR recovered to 67.0% in the same period in 2019.
The expansion speed is stable and the quality is high. In 2021, there were 1207 hotels (1763 newly opened / 239 withdrawn / 317 newly opened and ready for construction), with a net opening of + 315 compared with the same period last year, higher than the previously set target of 1500 newly opened. Among them, 1095 mid-range hotels were opened in the whole year, accounting for 51.98% / + 4.97pct. At the end of the 21st century, there were 4760 pipeline companies. In 2022, the company plans to open 1500 new hotels and sign 2500 new contracts.
Profit forecast and investment suggestions: the company will benefit from the improvement of supply-demand relationship in the industry in the short term. In the medium and long term, the “quality” and “quantity” of the company’s store expansion lead the industry, superimposing the improvement of governance efficiency brought by internal integration. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be RMB 770 / 19.5 / 2.46 billion, corresponding to eps0.1 billion 72 / 1.82/2.30 yuan, corresponding to dynamic pe69 5 / 27.3 / 21.7x.
Risk warning: repeated epidemic risk; The number and structure of expansion stores are less than expected; Integration was less than expected.