\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 258 Btg Hotels (Group) Co.Ltd(600258) )
The company released the annual report of 2021: 1) annual revenue: 6.153 billion yuan / + 16.49%, net profit attributable to the parent company: 56 million yuan / + 111.23%, turning losses into profits, deducting non attributable net profit of 11 million yuan / + 102.08%; 2) 2021q4: the revenue is 1.427 billion yuan / – 16.32%, the net profit attributable to the parent company is -69 million yuan / – 217.61%, and the net profit not attributable to the parent company is -83 million yuan / – 282.21%.
In terms of business segments: 1) hotel business: revenue of 5.832 billion yuan and net loss of 39 million yuan, 462 million yuan less than that in 2020; Among them, the revenue of Direct stores is 4.36 billion yuan / + 12.7%, accounting for 70.8%, and the number of stores accounts for 12.7%; The revenue of franchise stores is 1.47 billion yuan / + 26.8%, accounting for 23.9% / + 2.0 PCT, and the number of stores accounts for 87.3% / + 3.4 PCT; 2) Scenic spot business: revenue of 321 million yuan / + 26.86%, net profit of 89 million yuan / + 52.82%, mainly benefiting from the improvement of Hainan tourism market. The company’s Hainan Nanshan scenic spot is operated and repaired.
Light management hotels have accelerated the expansion of stores against the market. The epidemic situation in many places during the summer and even in the second half of the year has repeatedly affected the operation of stores, which is still under pressure. 1) Store opening: 1418 new stores were opened throughout the year, achieving the target of 1400 ~ 1600 stores set at the beginning of 2021, including 133 economical stores, 276 medium and high-end stores, 954 light management stores and 55 others. There are 1061 net stores and 1791 reserve stores. By the end of 2021, the number of medium and high-end hotels accounted for 23.4% / – 0.4pct, the economy accounted for 38.7% / – 11.6pct, and the light management accounted for 28.7% / + 12.1pct. 2) Store operation: ① the whole year: RevPAR 119 yuan / + 20.2%, adr192 yuan / + 11.6%, occ61 8% / + 4.4pct (changes of – 25.2%, – 4.2%, – 17.3pct respectively compared with 2019). Mature stores RevPAR 120 yuan / + 17.5%, ADR 190 yuan / + 9.2%, occ63 3% / + 4.4pct (changes of – 26.3%, – 6.9%, – 16.7pct respectively compared with 2019). ② Q4: overall RevPAR 108 yuan / – 17.4%, adr186 yuan / – 0.4%, occ57 9% / – 11.9pct (changes of – 28.7%, – 4.5%, – 19.6pct respectively compared with the same period in 2019).
The cost control was stable, and the overall cost rate declined due to the recovery of revenue. The gross profit rate is 26.15% / + 13.53pct, the net profit rate is 0.16%, and the sales expense rate is 5.2% / – 0.6pct. The slight increase in sales expense is mainly due to the increase in promotion, the management expense rate is 11.5% / – 1.2pct, and the slight increase in management expense is mainly due to the increase in the investment of development team personnel, and the financial expense rate is 8.5% / + 6.8pct. It is mainly due to the impact of the new leasing standards, and the R & D expense rate is 0.9% / + 0.1pct.
Outlook for 2022: according to the announcement, the company will further expand the development team and speed up the pace of opening stores. It is planned to open 18002000 new hotels in 2022 (higher than 14001600 at the beginning of 2021), accelerating the third to fifth tier sinking market layout; Continue to promote hotel upgrading and brand upgrading, and upgrade the stock of economic products to neo3 0 and midrange products such as home business travel and home selection.
Investment suggestion: buy – a investment rating. We estimate that the revenue growth rate of the company from 2022 to 2023 will be 10.4% and 25.7% respectively, and the net profit attributable to the parent company will be 442 million and 1019 million yuan, giving 30 times PE in 2023, corresponding to the target price of 27.3 yuan.
Risk tips: the progress of opening stores is not as expected, and the covid-19 epidemic has exceeded the expected impact, etc.
