\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 754 Shanghai Jin Jiang International Hotels Co.Ltd(600754) )
Event: in 2021, the company achieved a revenue of 11.339 billion, an increase of 14.56% year-on-year, and a net profit attributable to shareholders of listed companies of 101 million / year-on-year – 8.7%, mainly due to the investment income obtained from the sale of equity of subsidiaries in the same period last year. The net profit attributable to the shareholders of the listed company after deducting non profits was – 122 million (compared with – 670 million in the same period last year), and the performance was in line with expectations. Among them, Q4’s revenue was 2.99 billion / year-on-year + 3.26%, the net profit attributable to the parent was 3.8519 million, and the net profit attributable to the parent after deducting non-profit was – 77 million. The net profit attributable to the parent turned from loss to profit year-on-year. In 2021, the overall gross profit margin was 34.23%, the sales expense ratio was 7.82%, the management expense ratio was 20.47%, and the financial expense ratio was 4.76% (25.74% / 6.82% / 23.46% / 3.63% respectively in 2020).
RevPAR domestic hotels are still disturbed by the epidemic, and overseas hotels have recovered: the average house price of domestic hotels in Q4 in 2021 was 215.36 yuan, a year-on-year increase of 4.08%, the occupancy rate was 62.18%, a year-on-year decrease of 10.7pct, RevPAR was 133.91 yuan / room, a year-on-year decrease of 11.2%, of which the average house price / occupancy rate / RevPAR of middle-end hotels were + 0.82% / – 11.76pct / – 14.44% year-on-year, and the average house price / occupancy rate / RevPAR of economy hotels were + 3.38% / – 10.63pct / – 13.19% year-on-year; With the effective prevention and control of the epidemic, RevPAR recovered close to the level of 2019 in some periods, and the average house price / occupancy rate / RevPAR of domestic hotels in the whole year were + 8.69% / + 3.71pct / + 15.33% year-on-year respectively. The average house price / occupancy rate / RevPAR of the same store were + 5.66% / + 2.4pct / + 9.73% year-on-year respectively.
Affected by the covid-19 pneumonia epidemic in Europe, the RevPAR of overseas hotels in the whole year was 24.85 euros / room, with a year-on-year increase of + 25.25%, and the overall RevPAR of Q4 was 29.55 euros / room, with a year-on-year increase of + 77.8% and a month-on-month increase of q3-8.17%. The overall annual revenue of overseas hotels was 2.290 billion yuan, a year-on-year increase of 24.63%.
The consolidated operating income of the company’s food and catering business was 249 million yuan, an increase of 0.03% year-on-year, and the net profit attributable to the food and catering business segment was 203 million yuan, mainly due to the decrease in the fair value of KFC at the end of the period.
Expand against the trend and focus on the long-term growth space after integration: 2022q1 is greatly affected by the regional epidemic, and it is expected that China’s short-term RevPAR will continue to be under pressure, thus affecting the annual performance. However, the epidemic will accelerate the liquidation of the industry, and small and medium-sized single hotels may join chain brands to improve the chain rate, so as to improve their competitiveness and maximize brand benefits Shanghai Jin Jiang International Hotels Co.Ltd(600754) 2021: 1763 new hotels were opened, with a net increase of 1207. Compared with 2020 (1842 new hotels, with a net increase of 892), the number of new stores increased against the trend. In 2021, 1500 new stores are planned to be opened, 2500 new contracts are signed, and the pace of opening stores remains high. The group is coordinating the implementation of global hotel industry integration, and China, as a model of reform, will enter a new round of development.
Profit forecast, valuation and rating: considering the impact of the current epidemic, we lowered the net profit forecast for 22-23 years by 96% / 74% to 34 million / 368 million, EPS was 0.03/0.34 yuan (formerly 0.92/1.35 yuan), and the EPS forecast for 2024 was 0.74 yuan. We are optimistic about the long-term value of brand hotels after the concentration of the epidemic is improved, and maintain the “overweight” rating.
Risk warning: the progress of national reform is less than expected; Franchise expansion is lower than expected; The epidemic slowed down less than expected.
