\u3000\u3 Jiangsu Eastern Shenghong Co.Ltd(000301) 073 Zhejiang Ssaw Boutique Hotels Co.Ltd(301073) )
Performance description: the revenue / performance of the whole year in the 21st returned to 73% / 51% in the 19th year, and the profitability of 22q1 showed resilience in line with expectations: 1) the company achieved a revenue of 278 million yuan in 2021, an increase of 8.4% year-on-year, and recovered to 73% in the 19th year; The net profit attributable to the parent company was 37 million yuan, with a year-on-year increase of 5.3%, returning to 51% in 19 years; Deducting non net profit, 31 million yuan, with a year-on-year increase of 2.7%. Non recurring profits and losses are mainly government subsidies and investment profits and losses. In the second half of the year, affected by the epidemic, the Canadian ambassador’s performance was relatively under pressure, but still maintained the profit and showed relative toughness. The 21q3 / 4 revenue was 65.5/65.6 million yuan respectively, with a year-on-year decrease of 17.2% / 25.5%, and the net profit attributable to the parent company was 07.5/03.2 million yuan respectively, with a year-on-year decrease of 46.4% / 81.0%. 2) In 22q1, the company achieved a revenue of 61.5 million yuan / – 3.7%, recovered to 75% of the same period in 19 years, a net profit attributable to the parent of 03.9 million yuan / – 44.6%, a net profit of 63% of the same period in 19 years, and deducted a non net profit of 02.9 million yuan. Under the influence of the epidemic, the performance this year is under pressure, but it still strives to achieve profitability, showing resilience and the performance meets expectations.
The total direct revenue / RevPAR recovered to 67% / 81% in 19 years, and the entrusted revenue doubled compared with 19 years: 1) the total direct revenue was 247 million yuan / + 2.4% (accounting for 89%), the recovery degree was 67% compared with 19 years, the gross profit was 67 million yuan / + 25.9% (accounting for 72%), the recovery degree was 54%, and the gross profit margin was 27.0%, 6.8pct less than 19 years. Among them, the accommodation income accounting for 82% is 202 million yuan / + 11.9%, the degree of recovery is 70%, and the gross profit margin is 32.6%, 7.7pct less than that in 19 years; RevPAR of direct accommodation business is 231 yuan / + 26%, and the recovery is 81% – the rental rate is 58.0% / + 8.1pct, down from 9.2pct in 19 years. The house price per night is 398 yuan / + 8%, and the recovery is 93%. In addition, the catering / other service revenue was 24 / 20 million yuan, with a year-on-year increase of 8.7% / – 46.7%, a recovery of 73% / 47%, and a gross profit margin of – 64.9% / 81.5%, 24.0 / – 33.7pct less than that in 19 years By quarter, the average of 21q1 / Q2 / Q3 / Q4 / RevPAR is 69% / 99% / 79% / 76% respectively compared with that of 19; 22q1revpar increased by 5% year-on-year, with an average of 73% over the whole year of 19. The rental rate was 59.7% / + 7.6pct, and the average house price was 350.2 yuan / – 8%. 2) The entrusted management revenue was 31 million yuan / + 106%, an increase of 105% over 19 years, the gross profit was 26 million yuan / + 125%, an increase of 178% over 19 years, and the gross profit margin was 84.0%, an increase of 22.1pct over 19 years.
In 2022, it aims to sign 100 projects, make efforts to build brands throughout the year and choose opportunities to join in the future: 1) project development: the company will coordinate the expansion team of Junting, Junlan and Jinglan, adhere to the development mode of combining direct operation with entrusted management, and choose opportunities to start joining business; Adhering to the development strategy of “deepening the Yangtze River Delta and focusing on expanding Beijing, Southwest China and the Pearl River Delta”, 100 projects have been signed for 22 years. 2) Brand building: over the past 21 years, the company has managed and invested in more than 70 hotels. After the acquisition of Junlan and Jinglan in 22q1, the scale has exceeded 300, forming a medium and high-end multi brand matrix, ranking among the top 10 of national hotel groups and the top 50 of global hotel groups. In 22 years, the company will refine and standardize the external publicity of Junting, Junlan and Jinglan brands, establish and improve brand standards, and continue the research and development of new brands and products. In addition, the company plans to increase efforts in talent training, digital transformation and high-quality service innovation.
Looking forward to the second quarter, the Qingming holiday is full of rooms in many places (Guangzhou Huangpu Junlan, Beijing Minmetals Junlan, Anji laozhuangshan holiday, Qiandao Lake Meidiya Junlan, etc.), but with the spread of the epidemic, it is expected that the travel intention of May Day holiday will be affected again, which may affect the reservation enthusiasm in stages.
Profit forecast and investment suggestions: we believe that the integrated development of Junting and Junlan has opened the path of group expansion, the listing of the company has boosted the brand power, the asset volume has accelerated significantly, and there is potential expansion expectation. We expect that the company’s revenue will reach 620 / 830 million yuan in 23 / 25 years, and the performance will reach 170 / 270 million yuan, maintaining the buy rating.
Risk warning: the expansion of entrusted management is less than expected; The integration effect is not as good as expected; The operation of the target company fails to meet expectations; Impairment risk of goodwill and intangible assets, etc.
