\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 754 Shanghai Jin Jiang International Hotels Co.Ltd(600754) )
Event: the company released its first quarterly report. In 22q1, the company achieved a revenue of 2.32 billion yuan, an increase of 1.0%, a net profit attributable to the parent of – 120 million yuan, a year-on-year loss reduction of 62.685 million yuan, a net profit after deduction of non-profit of – 220 million yuan, and a year-on-year loss increase of 56.68 million yuan.
Comments:
The expansion of stores slowed down slightly compared with the same period, and the number of reserve stores increased. There are 232 newly opened hotels in 22q1 (347 newly opened hotels in 21q1) and 144 newly opened hotels in net increase (157 net increase in 21q1), including 4 directly operated hotels and 148 franchised hotels, which light the deepening of assets. By the end of March 22, 10800 hotels had been opened, an increase of 1.4% over the end of 21, and the number of hotel rooms opened had reached 1033000, an increase of 1.3% over the end of 21. The signing scale was further improved. As of the end of March 22, the number of hotels that had signed contracts but not yet opened reached 4780, an increase of 2.3% over the end of 21, laying a foundation for expansion.
The rental rate of mainland hotels is under pressure, and the RevPAR of overseas hotels has recovered to nearly 80% before the epidemic. The 22q1 epidemic situation in mainland China has been repeated, while the control of overseas epidemic situation has been gradually liberalized, and the recovery of overseas RevPAR is better than that in China. RevPAR of hotels in Chinese Mainland reached 104.4 yuan, a decrease of 10.7% over the same period, which was 72.6% over the same period of 19 years; ADR increased by 3.6% and the rental rate decreased by 8.1pct. RevPAR of overseas hotels reached 26.0 euros, an increase of 47.3% and recovered to 79.8% in the same period of 19 years, mainly due to the double increase of ADR and occupancy rate; Overseas ADR increased by 12.0% and the occupancy rate increased by 11.4pct.
Overseas revenue recovered strongly. 22q1, the limited service hotel business realized a revenue of 2.26 billion yuan, an increase of 1.3% at the same time. Among them, Chinese Mainland achieved revenue of 1.69 billion yuan, a decrease of 8.2% and overseas revenue of 570million yuan, an increase of 46.1%.
Gross profit margin fell. Affected by the repeated outbreaks in China and the changes in the new income standards, the gross profit margin of 22q1 decreased by 14.4pct to 23.3%. The management expense rate increased by 2.5pct to 25.2%, the sales expense rate decreased by 14.5pct to 6.8%, the R & D expense rate decreased by 0.1pct to 0.5%, and the financial expense rate decreased by 2.5pct to 4.9%.
Benefiting from non recurring profit and loss, the net profit attributable to the parent decreased year-on-year. The net profit attributable to the parent company was – 120 million yuan, with a year-on-year decrease of 62.685 million yuan, mainly due to the acquisition of relocation compensation income. The net interest rate also increased by 2.4pct to – 3.9%.
Investment suggestion: the epidemic situation in 22q1 is repeated at many points, resulting in pressure on hotel performance and strong recovery abroad. There are enough reserve stores to lay the foundation for the rapid expansion of stores. The supply and demand pattern of the hotel industry has improved significantly, the concentration of leaders has further improved, and the performance is expected to recover rapidly after the epidemic situation improves. Considering the repeated Q2 epidemic, the EPS forecast for 22-24 years was lowered to 0.44/1.12/1.45 yuan / share, and the corresponding PE of the current stock price was 123x / 48x / 37x, maintaining the rating of “overweight”.
Risk tip: the risk of repeated epidemic affecting the tourism industry, the risk of macroeconomic downturn, the risk of expansion speed, the risk of rising operating costs, and the risk of franchise store management.
