\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 754 Shanghai Jin Jiang International Hotels Co.Ltd(600754) )
Quarterly Review
The company issued a performance announcement for the first quarter of 2022. In Q1 2022, the company achieved operating revenue of 2.322 billion yuan / + 0.97%; The net profit attributable to the parent company was – 120 million yuan, a decrease of 63 million yuan over the same period last year; Deducting non net profit of – 218 million yuan, an increase of 57 million yuan over the same period last year; The gross profit margin is 23.3% / – 14.4pct.
Domestic business is under pressure, and overseas business is recovering rapidly. In Q1 2022, the company’s food and catering business revenue was 60 million yuan / – 9.82%, and the hotel business revenue was 2.26 billion yuan / + 1.29%. Domestic hotels achieved a revenue of 1.69 billion yuan / – 8.23%, of which the early service fee income was 110 million yuan / – 29.13%, and the continuous franchise fee income was 690 million yuan / + 3.09%. In Q1, Louvre achieved a revenue of 80 million euros / + 61.22%, and a net profit attributable to the parent company of – 20 million euros, a loss of 2.89 million euros compared with the same period of the previous year.
The domestic par recovered to 73% in 19 years. In 2022q1, the company’s RevPAR in China was 104 yuan / – 10.7%, which recovered to 72.6% in the same period in 2019; OCC is 50.8% / – 8.1pct, with a year-on-year increase of – 19.7pct; ADR was 206 yuan / + 3.6%, a year-on-year increase of + 0.8%. RevPAR of mid-range and economy hotels in 2022q1 recovered to 64.7% / 65.5% in 2019 respectively. Q1 overseas RevPAR was 26 euros / + 47.3%, recovering to 79.8% in the same period in 2019.
The expansion store maintains high quality and the reserve store increases. In 2022q1, there are 144 hotels (232 newly opened / 88 withdrawn). Among them, 142 mid-range hotels have been opened, accounting for 98.6% of the total; The net number of franchise stores was 148, and the overall franchise rate increased to 91.5%. As of Q1 of the year 22, the company had 4870 pipelines, an increase of 110 compared with the end of 2021, and the company had sufficient reserve stores.
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, and the internal integration will improve the governance efficiency. Considering the recent repeated epidemic in China, the net profit attributable to the parent company from 2022 to 2024 was reduced to RMB 5.4/18.7/2.28 billion, corresponding to eps0.5 billion 50 / 1.74/2.13 yuan, corresponding to dynamic pe106 5 / 30.8 / 25.2x.
Risk warning: repeated epidemic risk; The number and structure of extension stores are lower than expected; Integration was less than expected.
