\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 754 Shanghai Jin Jiang International Hotels Co.Ltd(600754) 2
Key investment points
Event: the company released the announcement of the first quarter report of 2022 on April 29. In the first quarter of 2022, the company achieved a total operating revenue of 2.322 billion yuan, a year-on-year increase of 0.97%; The net profit attributable to the parent company was – 120 million yuan, and the loss narrowed.
Comments:
The company’s 2022q1 performance was impacted by the epidemic. In the first quarter of 2022, the company achieved a total operating revenue of 2.322 billion yuan, a year-on-year increase of 0.97%; The operating profit was – 141 million yuan, with a year-on-year loss of 45 million yuan; The net profit attributable to the parent company was – 120 million yuan, and the loss narrowed. Among them, the company’s Overseas Limited hotel operation business benefited from the relaxation of epidemic prevention restrictions in many European countries, and its performance improved year-on-year, driving the company’s revenue to achieve positive growth when China’s scattered epidemic spread to 31 provinces and cities.
Overseas hotel business recovered rapidly. The company’s limited service hotel business realized a consolidated operating revenue of 2.264 billion yuan, a year-on-year increase of 1.29%. Among them, the operating income in Chinese Mainland was 1.691 billion yuan, a year-on-year decrease of 8.23%; The operating income outside Chinese Mainland reached 572million yuan, an increase of 46.12% year-on-year. The domestic operating revenue of Chinese Mainland accounted for 74.73% of the total hotel business, and the overseas operating revenue of Chinese Mainland accounted for 25.27% of the total hotel business.
The newly opened hotels are mainly medium and high-end hotels. In the first quarter of 2022, the company opened 232 new hotels, with a net increase of 144, and the number of new hotels decreased. Among the newly opened hotels, 142 medium and high-end hotels have been newly opened, accounting for 98.61% of the number of newly opened hotels; There are 2 economy hotels, accounting for only 1.39%, and the newly opened hotels are mainly medium and high-end hotels. As of March 31, 2022, the company has opened 10757 hotels and 1032730 guest rooms. The company has signed 15627 hotels and 1508258 guest rooms. The number of reserve hotels is sufficient. Among the hotels that have opened, 9840 have joined in, 148 have been added, accounting for 91.48%. The proportion of light assets has been further improved, and the company’s anti risk ability has been improved.
The operation of medium and high-end hotels is under pressure. In the first quarter of 2022, the average house price, average occupancy rate and RevPAR of the company’s domestic limited service hotels were 205.5 yuan, 50.81% and 104.41 yuan / room respectively. Among them, the RevPAR of mid-range hotels was 123.56 yuan / room, a year-on-year decrease of 15.89%, the RevPAR of economy hotels was 69.52 yuan / room, a year-on-year decrease of 3.73%, and the overall average RevPAR in China recovered to 72.62% in the same period of 2019.
Maintain recommended ratings. In the first quarter of 2022, the company was greatly impacted by the epidemic, the short-term performance was under pressure, and the RevPAR of medium and high-end hotels decreased by double digits year-on-year. However, the proportion of medium and high-end hotels and franchise hotels of the company has further increased, and there are sufficient contracted reserve stores, which is expected to maintain rapid growth. It is estimated that the company’s earnings per share in 2022 / 2023 will be 0.39 yuan and 1.40 yuan respectively, and the corresponding PE valuation will be 137.25 times and 38.32 times respectively, maintaining the “recommended” rating of the company.
Risk warning. The industry competition intensifies, the expansion of direct sales channels of members is less than expected, the growth of newly opened hotels is less than expected, the covid-19 epidemic is repeated, and the macroeconomic impact is not good.
