\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 754 Shanghai Jin Jiang International Hotels Co.Ltd(600754) )
Event: Q1 company achieved a revenue of 2.322 billion in 2022, with a year-on-year increase of 0.97%, mainly due to the gradual improvement and recovery of the operation of the company’s overseas limited service hotels compared with the same period of last year. The net profit attributable to the shareholders of the listed company was – 120 million (compared with – 183 million in the same period last year), mainly due to the relocation compensation income obtained in the current period. The net profit attributable to the shareholders of the listed company after deduction of non recurring items was -218million (compared with -161million in the same period of last year), which was mainly caused by the decrease in the number of closed hotels outside Chinese Mainland affected by the epidemic in the current period, resulting in a decrease in the depreciation, amortization, rent and other closed losses included in the non recurring profit and loss items compared with the same period of last year. The performance was in line with expectations. In the first quarter, the gross profit margin was 23.29%, a year-on-year decrease of 14.42pct, the sales expense rate was 6.84%, a year-on-year decrease of 14.5pct, mainly due to the adjustment of accounting standards, the management expense rate was 25.19%, a year-on-year increase of 2.47pct, the financial expense rate was 4.92%, a year-on-year decrease of 2.47pct.
RevPAR domestic hotels are still disturbed by the epidemic, and the overseas recovery has improved significantly: the average house price of domestic hotels in Q1 2022 was 205.50 yuan, an increase of 3.58% year-on-year, the occupancy rate was 50.81%, a decrease of 8.12pct year-on-year, RevPAR was 104.41 yuan / room, a decrease of 10.69% year-on-year, of which the average house price / occupancy rate / RevPAR of middle-end hotels were + 1.44% / – 10.82pct / – 15.89% year-on-year, and the average house price / occupancy rate / RevPAR of economy hotels were + 5.66% / – 4.65pct / – 3.73% year-on-year; Among them, the RevPAR of mid-range hotels was 64.65% in the same period of 2019, that of economy hotels was 65.46% in the same period of 2019, and the overall average RevPAR in China was 72.62% in the same period of 2019.
The overseas business operation has been gradually improved. The RevPAR of overseas hotels in the first quarter was 25.95 euros / room, a year-on-year increase of + 47.28%. The overall revenue of overseas hotels was 81 million euros, a year-on-year increase of 61.22%. Among them, the RevPAR of overseas mid-range hotels / economy hotels / the overall average RevPAR were 82.37% / 79.22% / 79.77% respectively in the same period in 2019.
The company’s food and catering business achieved a consolidated operating income of 58.56 million yuan, a year-on-year decrease of 9.82%, mainly affected by the domestic epidemic in the first quarter.
Pay attention to the progress of the epidemic in the short term and the long-term growth space after integration: 2022q1 is greatly affected by the regional epidemic. It is expected that China’s short-term RevPAR will continue to be under pressure, which will affect 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) q in 2022, 232 new hotels were opened in Q1, with a net increase of 144. Compared with the same period in 2021 (347 new hotels and 157 new hotels), the speed of opening new stores has slowed down. In 2022, it is planned to open 1500 new stores and sign 2500 new contracts. 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: we maintain the EPS of 0.03/0.34/0.74 yuan for 22-24 years, are optimistic about the long-term value of brand hotels after the concentration is improved after the end of the epidemic, 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.
