Tracking the rise and fall of the sector: this week's sector Market (03280401): this week, the Shanghai Composite Index rose 2.19%, the Shenzhen Component Index rose 1.29%, and the gem index rose 1.10%. SW hotel sector rose 5.99%, and Huazhu group, the subject of Hong Kong stocks, rose 8.23%.
Industry data tracking: in March, the non manufacturing business activity index was lower than the critical point, and the hotel operation data continued to be under pressure. In March, the non manufacturing business activity index was 48.4%, down 3.2 percentage points month on month, lower than the critical point. The non manufacturing industry as a whole was greatly affected by the epidemic.
From March 20 to March 26, the occupancy rate of medium and high-end hotels decreased to 38.4% (year-on-year - 26.5pct), ADR was 372 yuan (year-on-year - 7.4%), and RevPAR decreased to 143 yuan (year-on-year - 26.5%); The occupancy rate of medium and low-end hotels decreased to 43.5% (YoY - 33.4pct), ADR decreased to 171 yuan (YoY - 23.1%), and RevPAR decreased to 74.5 yuan (YoY - 56.5%). The price reduction range of medium and high-end hotels is smaller, so the damage to RevPAR is relatively small.
Announcement of the company: Shanghai Jin Jiang International Hotels Co.Ltd(600754) issued the annual performance announcement of 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).
Investment suggestion: in the short term, the supply end of the hotel industry is cleared, the demand end is gradually repaired, and the logic of long-term chain and medium and high-end is clear. The leading companies in the industry have strong ability to expand stores and high brand premium. In the long term, they will fully enjoy the growth attributes brought by the rapid expansion of stores and price increase. In the short term, it is suggested to pay attention to the recovery of business travel demand. It is suggested to pay attention to the target Hotels with high market share in China: Shanghai Jin Jiang International Hotels Co.Ltd(600754) , Huazhu group, Btg Hotels (Group) Co.Ltd(600258) .
Risk tip: the epidemic situation is repeated, the speed and structure of store expansion are lower than expected, and the industry competition is intensified.
