\u3000\u3 Jointo Energy Investment Co.Ltd.Hebei(000600) 754 Shanghai Jin Jiang International Hotels Co.Ltd(600754) )
The company released the first quarterly report of 2022: ① 22q1 achieved a revenue of 2.322 billion yuan / yoy + 0.97% (compared with the same period of 2019 – 30.4%), the net profit attributable to the parent company was – 120 million yuan, a loss of 63 million yuan compared with the same period of the previous year, deducting the net profit not attributable to the parent company of – 218 million yuan, a loss increase of 57 million yuan compared with the same period of the previous year, the relocation compensation income in non recurring profits and losses was 896642 million yuan, and the government subsidy was 210124 million yuan; ② 22q1 net cash inflow from operating activities was 91 million yuan, which became positive year-on-year; ③ The limited service hotel business achieved a revenue of 2.263 billion yuan / yoy + 1.29%, of which the domestic revenue was 1.691 billion yuan / yoy-8.23%, and the overseas revenue was 572 million yuan / yoy + 46.12%.
In terms of sub structure, Louvre continued to reduce losses, and Vienna formed the core performance support. ① Sub sectors: Hotel 22q1 achieved revenue of 2.263 billion / + 1.29%, food and catering 58.56 million yuan / yoy-9.82%; ② Sub regions: within the hotel sector, domestic business 22q1 achieved revenue of 1.691 billion / yoy-8.23%; Overseas 22q1 realized income of 8085 euros / yoy + 61.22%. ③ Sub project: in the hotel sector, the combined revenue of domestic hotels in 22q1 reached 101 million yuan / – 29.13% in the middle and early stage, and the revenue from continuous franchise and labor dispatch services reached 687 million yuan / + 3.09%. ④ Subsidiaries: the revenue of Lufu / Botao / VIENNA / Jinjiang was 560 million / 570 million / 710 million / 390 million respectively, with a year-on-year increase of + 61.2% / – 12.2% / – 5.2% / – 10.2% respectively; Net loss of – 166 million yuan (loss of – 206 million yuan in the same period last year, loss reduction of 40 million yuan) / net loss attributable to parent company of 10.43 million yuan (net profit of 17.62 million yuan in the same period last year) / net profit of 70.08 million yuan (year-on-year – 21.1%) / net loss of 86.34 million yuan (net loss of 61.12 million yuan in the same period last year).
Structural upgrading helped hedge the impact of the epidemic, and overseas operations recovered steadily. ① Domestic full caliber: 2022q1revpar is 104.41 yuan / yoy-10.7% (restored to 72.62% in the same period of 19 years), the average house price is 205.50 yuan / yoy + 3.6% (compared with the same period of 19 years + 0.8%), and the occupancy rate is 50.81% / yoy-13.8pct (compared with the same period of 19 years – 19.7pct); Among them, RevPAR of domestic mid-range hotels recovered to 64.65% in the same period of 19 years, and RevPAR of economy hotels recovered to 65.46% in the same period of 19 years; Q1 epidemic in China has put pressure on operation, and structural upgrading has significantly hedged the impact of the epidemic. ② Overseas full caliber: 2022q1 full caliber RevPAR is 25.95 euros / yoy + 47.3% (restored to 79.77% in the same period of 19 years), the average house price is 54.39 euros / yoy + 12.0% (compared with – 2.2% in the same period of 19 years), and the occupancy rate is 47.72% / yoy + 31.5pct (compared with – 18.9pct in the same period of 19 years); Among them, RevPAR of overseas mid-range hotels recovered to 82.37% in the same period of 2019, RevPAR of economy hotels recovered to 79.22% in the same period of 2019, and overseas operations further recovered. ③ Domestic same store: RevPAR is 101.90 yuan / yoy-14.36%, the average house price is 200.98 yuan / yoy + 1.37%, and the occupancy rate is 50.7% / yoy-9.31pct.
Affected by the epidemic, profitability declined and the level of fee control was generally stable. ① 22q1 Jinjiang gross profit margin was 23.3%, with a year-on-year increase of – 14.4pct. Affected by the epidemic, the profitability declined. ② In absolute terms, the management cost of 22q1 reached 585 million, a year-on-year increase of + 12%; Considering that the administrative expenses of 21q2 / Q3 / Q4 are RMB 590 / 5.5 / 630 million respectively, the administrative expenses in this quarter are within the normal range. ③ The sum of operating costs + administrative expenses + sales expenses is 2.52 billion, 20q1-21q4, which is generally between 2.36 billion and 2.81 billion, and the overall expenditure in this quarter is also within the normal range.
Stores expanded steadily against the trend and the structure continued to upgrade. 22q1 stores opened 232 new stores (net opening 144 / exit 88), of which 4 were closed / 148 were opened by direct sales / franchisees respectively, and 2 / 142 were opened by economical / medium and high-end stores respectively. The structure of stores has been continuously upgraded. Among the heavyweight brands, the original platinum Tao series Lifeng / coffee / Xi’an / huanpeng / Chaoman opened 15 / 9 / 13 / 16 / 8 respectively, which was generally stable and huanpeng performed brilliantly; In the Vienna department, there are 23 / 25 / 20 international / Vienna hotels / Vienna Sanhao respectively, which also perform steadily. Among the economic brands, IU / PAI / Magnolia have a net opening of 11 / 8 / 1 and a net closing of 19 in seven days. The adjustment result remains to be seen. As of 22q1, the number of domestic hotels has reached 9509 (month on month + 154), and pipeline has reached 4793 (month on month + 98).
Investment suggestion: with the stabilization of the epidemic situation in China, the travel demand is expected to recover gradually; Superimposed on the historical de supply of hotel stock, the supply and demand pattern of the hotel industry has been significantly optimized in the post epidemic era, and a new business cycle is about to start. Jinjiang has abundant resources, rich brands and strong stores; Since May of 20 years, the integration has accelerated, the platform effect is prominent, the expense rate is expected to improve, and the profit space is released. Considering the short-term impact of the epidemic on the company’s performance, the 22-year profit forecast is lowered. It is estimated that the net profit attributable to the parent company in 202224 will be RMB 520 / 21.2 / 2.43 billion respectively, and the corresponding PE will be 110x / 27x / 24x respectively, maintaining the “recommended” rating.
Risk tips: the epidemic situation repeatedly exceeds expectations, the expansion of stores is less than expected, and the management fee is at risk of decline
