\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. 22q1 achieved an operating revenue of 2.322 billion yuan, an increase of 0.97% over the same period last year; The net profit attributable to the parent company lost 120 million yuan, a decrease of 63 million yuan compared with the same period last year; Deducting the net profit not attributable to the parent company, the loss was 218 million yuan, an increase of 57 million yuan over the same period last year.
Comments:
The recovery of domestic business is tortuous, and the recovery of overseas hotels is obvious
22q1’s hotel business achieved a revenue of 2.264 billion yuan, an increase of 1.29% year-on-year, mainly due to the gradual improvement and recovery of overseas hotels. Q1 domestic / overseas hotels achieved a revenue of 1.69/570 billion yuan, respectively – 8.2% / + 46.1% year-on-year. The catering business was affected by the epidemic that began in late February. Q1 achieved a revenue of 59 million yuan, down 9.8% year-on-year. The change of revenue and the promotion of integration led to changes in costs and expenses. The gross profit margin of the company was 23.3%, down 14.5pct month on month (21q4), the sales expense rate / management expense rate / financial expense rate were 6.8% / 25.2% / 4.9% respectively, and -3.0pct / + 3.3pct / + 1.0pct month on month (21q4). Overall, the company’s net profit attributable to the parent company lost 120 million yuan, a year-on-year decrease of 63 million yuan, which was due to the acquisition of relocation compensation income.
Continue to develop the mid-range market, and the recovery of RevPAR abroad is better than that in China
22q1 company opened 232 new stores, with a net increase of 144, including – 4 / + 148 direct / franchise stores and 142 / 2 mid-range / economical stores. As of 22q1, the company has opened 10757 stores, with middle-end stores accounting for 52.6%, franchise stores accounting for 91.5%, and the number of reserve stores was 4870, an increase of 110 month on month. In terms of business performance, overseas hotels recovered better than domestic hotels. RevPAR of domestic hotels in 22q1 decreased by 10.7% year-on-year and recovered to 72.6% in the same period of 19 years, of which ADR / OCC were + 3.6% / – 8.1pct year-on-year respectively; ADR / OCC of overseas hotels increased by 12.0% / 11.4pct respectively year-on-year, and RevPAR of two-phase superposition increased by 47.3% year-on-year, returning to 79.8% in the same period of 19 years.
Profit forecast and investment rating
The repeated domestic epidemic still brings short-term business pressure, but the demand after the epidemic is expected to recover rapidly. The company ranks first in the industry, the proportion of medium and high-end continues to increase, and the internal integration helps reduce costs and increase efficiency. The growth is still worth looking forward to. It is estimated that the company’s revenue in 202224 will be 12.92/16.46/17.78 billion yuan respectively, with a corresponding growth rate of 14% / 27% / 8%; The net profit attributable to the parent company was RMB 540 million / 17.9 million / 2.21 billion respectively, with a corresponding growth rate of 435% / 233% / 23%, and the PE corresponding to the current share price was 107x / 32x / 26x, maintaining the rating of “overweight”.
Risk tips
Risk of recurrent outbreaks; Macroeconomic downturn risk; The extension store was not as expected.
