Less than half a year after listing, Zhejiang Ssaw Boutique Hotels Co.Ltd(301073) (301073. SZ) began a capital move.
On January 21, Zhejiang Ssaw Boutique Hotels Co.Ltd(301073) announced that it had signed the equity acquisition agreement on 79% equity of Zhejiang Junlan Hotel Management Co., Ltd., the equity acquisition agreement on 70% equity of Jinglan Hotel Investment Management Co., Ltd. and the trademark transfer agreement on “Junlan” series trademarks with Junlan Hotel Group Co., Ltd. on January 21, 2022.
Based on the appraisal value of the appraisal report and determined through negotiation by all parties to the transaction, the acquisition price of 79% equity of Zhejiang Junlan Hotel Management Co., Ltd. is 66 million yuan, the acquisition price of 70% equity of Jinglan Hotel Investment Management Co., Ltd. is 14 million yuan, and the transfer price of “Junlan” series trademarks is 60 million yuan, totaling 140 million yuan. The source of acquisition funds is raised funds. After the completion of this transaction, the company will hold 79% equity of Zhejiang Junlan Hotel Management Co., Ltd. and 70% equity of Jinglan Hotel Investment Management Co., Ltd. the target company will become a holding subsidiary of the company and be included in the scope of the company’s consolidated statements.
According to the announcement, as the subject of this transaction, by the end of December 2021, the brand management performance of Zhejiang Junlan Hotel Management Co., Ltd. had spread across 23 provinces and cities in China, covering more than 100 cities and counties, invested and managed more than 180 hotels and a total of more than 50000 guest rooms; Since its establishment in 2015, Jinglan Hotel Investment Management Co., Ltd. has achieved management performance in 13 provinces and cities in China, with a total of 75 investment management hotels.
From January to September 2021 and in 2020, the revenue of Zhejiang Junlan Hotel Management Co., Ltd. was 47.2985 million yuan and 41.5145 million yuan respectively; The net profit was 13.8454 million yuan and 8.7951 million yuan.
The situation of Jinglan Hotel Investment Management Co., Ltd. is slightly worse. Its revenue from January to September 2021 and 2020 is 13.324 million yuan and 14.9598 million yuan respectively; The net profit is -666100 yuan and -4310100 yuan.
As the acquirer, Zhejiang Ssaw Boutique Hotels Co.Ltd(301073) also announced the performance forecast for the whole year of 2021. The report shows that the net profit attributable to the shareholders of the listed company for the whole year of Zhejiang Ssaw Boutique Hotels Co.Ltd(301073) 2021 was 36.1 million yuan – 37.7 million yuan, a year-on-year increase of 2.95% – 7.51%.
Zhejiang Ssaw Boutique Hotels Co.Ltd(301073) said in the announcement that this acquisition has accelerated the layout of the company in the medium and high-end hotel market. At the same time, it has effectively expanded the service depth and business breadth of China’s high-end hotel market, making the regional layout broader and the hotel product level more perfect.
In this regard, Zhou Mingqi, founder of Jingjian think tank, told the interface news, “behind them is a boss, which is equivalent to changing left hand to right hand. Junting has just been listed, and Junlan has been acquired, which means that it has been installed in a listed company. Junlan has always been a good high-end hotel brand, and the overall valuation of the company (Junting) will rise.”
Since its listing on September 30 last year, Zhejiang Ssaw Boutique Hotels Co.Ltd(301073) has poured in considerable cash flow. According to the data, Zhejiang Ssaw Boutique Hotels Co.Ltd(301073) closed at 28.64 yuan / share on the first day, up 133.99%, with a trading volume of 13.5351 million shares. In the following months, the company responded to investors on the interactive easy platform, saying that “the company will not rule out expanding its operation scale and brand influence through mergers and acquisitions and other capital operations in the future”.
Subsequently, from the perspective of management, the company did synchronize the high-level blood exchange of important positions. On December 4, according to another announcement of the company, Zhu Xiaodong took the post of new general manager of the company instead of Congbo, which is also the first time for the company to introduce professional managers. According to public data, Zhu Shengeng has been engaged in China’s high star wine affairs for more than 30 years. He has deeply led the business operations of Beijing Yintai Center and Hyatt International Hotel Group in China, and has made outstanding achievements in the wine tourism industry.
At present, large-scale hotel groups are collectively facing the volatile adjustment of market structure, making great efforts to the medium and high-end market, which has become a new idea to solve problems in the industry. Hotels are bidding farewell to the “trademark era” and moving towards the “brand generation”.
For Junting, medium and high-end brands are also an indispensable part of its development strategy. Since its establishment, Junting has been taking the Yangtze River Delta Urban Agglomeration as the core development area and gradually expanded to key cities nationwide. Its choice in the southwest is Chengdu and Chongqing. The center of gravity of Junting South China lies in the Pearl River Delta urban agglomeration including Guangzhou and Shenzhen.
Previously, public information showed that on December 31, 2021, the pagoda brand flagship store previously Zhejiang Ssaw Boutique Hotels Co.Ltd(301073) built in Chengdu landed. The commercial office, business, hotel and cultural space are integrated into one, surrounded by Chunxi Road of the business district – Ocean Swire business district, and sits on the bustling passenger flow of the central business district of Chengdu. This is also an example of the high-end market in the southwest region of Junting Luozi.
From the perspective of the general situation of the industry, Zhou Mingqi said, “under the epidemic, most hotels don’t live very well. This is the time to shuffle and speed up the clearing.”
At the same time, he also stressed to the interface news that in addition to the appreciation at the capital level, Zhejiang Ssaw Boutique Hotels Co.Ltd(301073) takes this opportunity to power the medium and high-end market, improve its own performance and create a higher customer unit price; The focus is on attacking the sinking market, the market competition is relatively weak, and some new first and second tier cities are actually high-quality markets with high consumption power.
Southwest Securities Co.Ltd(600369) the research report points out that the epidemic is accelerating the liquidation of the hotel industry, and the chain rate has increased significantly from 26% to 31%, but there is still room compared with 70% in the United States; The counter trend expansion of the wine management group during the epidemic period concentrated the share to the head, which helped to standardize the supply of the industry; The upgrading of the head company to the medium and high-end is conducive to optimizing the existing product structure, so as to improve the overall profitability and weaken the cycle fluctuation by adding weight to light assets. In the post epidemic period, the hotel industry is expected to open an upward revenue cycle driven by house prices under the new pattern. The research report said that it is optimistic about Zhejiang Ssaw Boutique Hotels Co.Ltd(301073) ‘s brand strength in the medium and high-end hotel market and the possibility of leapfrog development through extension M & A in the future.
The overall acceleration of Junting company has been revealed. Some investors asked Zhejiang Ssaw Boutique Hotels Co.Ltd(301073) whether there is a plan to open a branch in Beijing in 2022. The company said that it has considered the layout of the Beijing market, and the relevant projects are under preliminary negotiation.
On the previous day, January 5, 2022, according to data statistics, a new institution made a prediction on the annual performance of Zhejiang Ssaw Boutique Hotels Co.Ltd(301073) 2022. Within 6 months, there are 2 institutions in total, and it is predicted that the average net profit in 2022 will be 69.125 million yuan. Among them, one institution rated “increased holdings” and one institution “held”.
