Investment Rating - The report maintains a "Buy" rating for Atour Hotel (ATAT.US) with a target price of $34.8, representing a potential upside of 37.3% from the current stock price of $25.4 [2][6]. Core Insights - Atour Hotel continues to expand rapidly, focusing on high-end hotel brands, with a total of 1,533 stores as of Q3, including 12 self-operated stores and 1,504 franchise stores [2][6]. - The company reported Q3 revenue of 190 million yuan, a year-on-year decrease of 20.4%, but net profit exceeded Bloomberg consensus expectations, with a GAAP net profit of 38 million yuan, up 45.3% year-on-year [2][6]. - The company has a strong membership growth, with registered members reaching 83 million, a year-on-year increase of 53.7% [2][6]. Financial Overview - For FY24, the company expects revenue growth of 51.9% year-on-year, with projected revenues of 7.09 billion yuan, 8.86 billion yuan in FY25, and 10.57 billion yuan in FY26 [2][6]. - The adjusted net profit is forecasted to be 1.285 billion yuan in FY24, 1.591 billion yuan in FY25, and 1.991 billion yuan in FY26, reflecting significant growth rates [2][6]. - The report highlights a strong retail performance, with GMV reaching 566 million yuan in Q3, a year-on-year increase of 108% [2][6]. Store Expansion and Market Position - The company opened a record number of new stores in Q3, with 140 new openings and a total of 732 stores in the pipeline, indicating a robust expansion strategy [2][6]. - Atour Hotel's RevPAR (Revenue per Available Room) faced pressure due to high base effects from last year's summer travel boom, with a year-on-year decline of 10.5% [2][6]. - The company is enhancing its multi-brand matrix with the introduction of a new high-end service brand, aiming to improve its market share in the mid-range segment [2][6].

Core Insights - The article emphasizes a conservative yet opportunistic value investment approach, focusing on financial data to assess a company's health and using qualitative analysis for a comprehensive understanding of growth prospects [1]. Group 1 - The author has been investing since 2005 and has a strong preference for fact-driven analysis [1]. - Research is published on platforms like Seeking Alpha and FAST Graphs, indicating a commitment to sharing insights with a broader audience [1]. - Engagement with readers is encouraged, highlighting the importance of community interaction in investment discussions [1]. Group 2 - There is a potential interest in initiating a long position in ATAT within the next 72 hours, suggesting a strategic move based on current market conditions [2]. - The article expresses personal opinions and does not involve compensation from companies mentioned, ensuring an unbiased perspective [2]. - No existing stock or derivative positions are held in the companies discussed, which may indicate a fresh analysis rather than a pre-existing bias [2].

Financial Data and Key Metrics Changes - The company's net revenues for Q3 2024 grew by 46.7% year-over-year and 5.7% quarter-over-quarter, reaching RMB1,899 million, driven by growth in the manachised hotel and retail businesses [37][38] - Adjusted net income for Q3 2024 was RMB384 million, representing a 41.2% increase year-over-year, with an adjusted net profit margin of 20.2%, a decrease of 0.8 percentage points year-over-year [50] - Adjusted EBITDA for Q3 2024 was RMB532 million, up by 40% year-over-year, with an adjusted EBITDA margin of 28.0%, which decreased by 1.4 percentage points year-over-year [51] Business Line Data and Key Metrics Changes - Revenues from manachised hotels for Q3 2024 were RMB1,179 million, up by 51.0% year-over-year and 14.8% quarter-over-quarter, with RevPAR reaching RMB376 [38][39] - Revenues from leased hotels were RMB190 million, reflecting a 20.4% year-over-year decline, attributed to a decrease in the number of leased hotels [40] - Retail business revenues for Q3 2024 were RMB408 million, reflecting a 104% year-over-year increase, although there was a 10.6% quarter-over-quarter decline due to seasonality [41] Market Data and Key Metrics Changes - The total number of manachised hotels increased to 1,504 as of September 30, 2024, up by 39.3% year-over-year [39] - The number of hotels under development reached 732, indicating strong franchisee confidence and brand recognition [13] - The membership base exceeded 83 million, marking a 53.7% increase year-over-year [28] Company Strategy and Development Direction - The company aims to innovate and elevate hotel offerings while strengthening service advantages to enhance customer experience [8] - The strategy includes expanding the hotel network with a target of 2,000 premier hotels by next year, focusing on quality over quantity in new signings [68][76] - The launch of the upscale brand SAVHE Hotel aims to inject new vitality into the upscale hotel market in China, with a focus on quality and user experience [75][76] Management's Comments on Operating Environment and Future Outlook - Management noted steady growth in domestic travel demand and highlighted the resilience of the service consumption market [7] - The full-year RevPAR is expected to decline by a mid-to-high single-digit year-on-year, with revenue growth guidance maintained at 48% to 52% [60] - The retail business is projected to continue growing faster than the hotel business, with a focus on the sleep economy market [105] Other Important Information - The company has established over 1,500 Bambook libraries in more than 200 cities across China, promoting cultural exchange and community engagement [34] - The company is committed to maintaining a healthy cash position, with cash and cash equivalents totaling RMB2,741 million as of September 30, 2024 [52] Q&A Session Summary Question: Insights on Q3 and Q4 RevPAR performances and guidance - Management indicated that Q3 RevPAR was impacted by high base effects and external factors, but showed improvement in October, with expectations of a mid-to-high single-digit decline for full-year RevPAR [57][59] Question: Guidance on hotel openings and new signings - The company raised its full-year new openings guidance from 400 to 450 hotels, citing strong franchisee confidence despite RevPAR fluctuations [65][66] Question: Details on the new upscale brand SAVHE - SAVHE is positioned as a premium-end hotel with a RevPAR target of RMB550 to RMB650, with a focus on quality and long-term growth in the upscale segment [77][78] Question: Updates on Atour 4.0 and Atour Light 3.0 - Atour 4.0 has six hotels in operation with plans to exceed ten by year-end, while Atour Light 3.0 signed 38 new projects in Q3, expected to exceed 100 hotels in operation by year-end [84][85] Question: Plans for hotel closures and leased hotels - The company expects to close around 50 hotels this year based on quality evaluations, with a focus on maintaining high standards [94][95] Question: Growth potential in the retail business - Management sees significant growth potential in the sleep economy market, maintaining a revenue growth forecast of doubling year-on-year for the retail segment [105]

Core Viewpoint - Atour Lifestyle Holdings Limited Sponsored ADR (ATAT) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [2]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, making the Zacks rating system valuable for investors [3][5]. Impact of Institutional Investors - Institutional investors utilize earnings estimates to calculate the fair value of a company's shares, leading to stock price movements based on their buying or selling activities [5]. Business Improvement Indicators - The rising earnings estimates and the Zacks rating upgrade for Atour Lifestyle Holdings Limited indicate an improvement in the company's underlying business, suggesting that investors may push the stock price higher [6]. Earnings Estimate Revisions - For the fiscal year ending December 2024, Atour Lifestyle Holdings Limited is expected to earn $1.23 per share, reflecting a 33.7% increase from the previous year [9]. - Over the past three months, the Zacks Consensus Estimate for the company has increased by 11.9% [9]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [8]. - The upgrade to Zacks Rank 2 positions Atour Lifestyle Holdings Limited in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [12].

For those looking to find strong Consumer Discretionary stocks, it is prudent to search for companies in the group that are outperforming their peers. Atour Lifestyle Holdings Limited Sponsored ADR (ATAT) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Consumer Discretionary peers, we might be able to answer that question.Atour Lifestyle Hold ...

Investment Rating - The report maintains a "Buy" rating for Atour Group (ATAT.US) and raises the target price to $31.5, indicating a potential upside of 23.0% from the current price of $25.6 [4][9][22]. Core Insights - Atour Group's revenue for Q3 2024 reached RMB 1.899 billion, a year-on-year increase of 46.7%, exceeding expectations. The growth was driven by rapid store expansion and strong performance in retail business, particularly the Atour Planet brand, which saw a 104% increase in revenue [1][2]. - The company has net opened 140 new stores in Q3 2024, setting a new record for quarterly openings, and has raised its full-year store opening target to 450 [1][3]. - Despite a decline in RevPAR (Revenue per Available Room) of 10.5% in Q3 2024 due to high base effects and adverse weather, the report anticipates a narrowing of this decline in Q4 2024 [2][3]. Summary by Sections Financial Performance - Q3 2024 revenue was RMB 1.899 billion, with a 46.7% year-on-year growth. Franchise hotel revenue was RMB 1.179 billion, up 51%, while retail revenue reached RMB 480 million, growing 104% [1][15]. - The net profit attributable to shareholders for Q3 2024 was RMB 380 million, a 47.3% increase year-on-year [1][9]. Store Expansion - The company has net opened 360 new stores in 2024, with a target of 450 for the year. Management is confident in reaching 2,000 stores by 2025 [1][3]. Revenue Projections - The report projects that Atour Group's full-year revenue target for 2024, which is set to grow by 48%-52%, is likely to be exceeded due to strong performance in both accommodation and retail segments [3][9]. Profitability Metrics - The overall gross margin for Q3 2024 was 41.5%, with a slight decline attributed to increased sales expenses [9][10]. - The report has adjusted profit forecasts upward for 2024-2026 based on better-than-expected performance and accelerated store expansion [9][10].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company reported Q3 2024 revenue of 1.9 billion RMB, an increase of 46.7% year-over-year, and a net profit of 380 million RMB, up 45.3% [1] - Adjusted net profit for Q3 was 384 million RMB, reflecting a 41.2% increase, while adjusted EBITDA reached 532 million RMB, growing by 40.0% [1] - The report highlights a decline in RevPAR (Revenue per Available Room) of 10.5% year-over-year, attributed to high base effects from the previous year, but anticipates a recovery in Q4 [1] Summary by Sections Financial Performance - Q3 RevPAR was 380 RMB, down 10.5%, with same-store RevPAR declining by 8.4% [1] - Occupancy rate (OCC) was 80.3%, a decrease of 2.1 percentage points, while Average Daily Rate (ADR) was 456 RMB, down 8.0% [1] - Retail GMV (Gross Merchandise Volume) for Q3 was 570 million RMB, showing a growth of 108% [1] Business Growth - The company opened 140 new hotels in Q3, reaching a total of 1,533 hotels, a 38% increase year-over-year [1] - The pipeline includes 732 hotels, with a strong signing intention [1] - The introduction of a new high-end brand is expected to enhance the company's multi-brand strategy [1] Future Outlook - The report projects adjusted net profits for 2024E, 2025E, and 2026E to be 1.29 billion RMB, 1.58 billion RMB, and 1.97 billion RMB respectively, with corresponding P/E ratios of 21, 17, and 14 [1]

Exhibit 99.1 Atour Lifestyle Holdings Limited Reports Third Quarter of 2024 Unaudited Financial Results The revenue per available room ("RevPAR") was RMB380 for the third quarter of 2024, compared with RMB424 for the same period of 2023 and RMB359 for the second quarter of 2024. SHANGHAI, China, November 19, 2024 -- Atour Lifestyle Holdings Limited ("Atour" or the "Company") (NASDAQ: ATAT), a leading hospitality and lifestyle company in China, today announced its unaudited financial results for the third qu ...

Core Viewpoint Atour Lifestyle Holdings Limited reported strong financial and operational performance for the third quarter of 2024, with significant year-over-year increases in revenues, net income, and hotel network expansion, indicating robust growth in both its hotel and retail segments. Financial Performance - Net revenues for Q3 2024 increased by 46.7% year-over-year to RMB1,899 million (US$271 million) from RMB1,294 million in Q3 2023 [9][22] - Net income for Q3 2024 rose by 45.3% year-over-year to RMB381 million (US$54 million), compared to RMB262 million in Q3 2023 [22] - Adjusted net income (non-GAAP) for Q3 2024 increased by 41.2% year-over-year to RMB384 million (US$55 million) from RMB272 million in Q3 2023 [23] - EBITDA (non-GAAP) for Q3 2024 grew by 42.9% year-over-year to RMB529 million (US$75 million) compared to RMB370 million in Q3 2023 [24] - Adjusted EBITDA (non-GAAP) for Q3 2024 increased by 40.0% year-over-year to RMB532 million (US$76 million) from RMB380 million in Q3 2023 [25] Operational Highlights - As of September 30, 2024, Atour operated 1,533 hotels with a total of 175,199 hotel rooms, representing increases of 37.9% and 36.1% year-over-year, respectively [3] - The company opened 140 new hotels during Q3 2024, setting a quarterly record [6] - There are 732 manachised hotels under development in the pipeline as of September 30, 2024 [3] Key Metrics - The average daily room rate (ADR) for Q3 2024 was RMB456, down from RMB495 in Q3 2023 [4] - The occupancy rate for Q3 2024 was 80.3%, compared to 82.4% in Q3 2023 [4] - Revenue per available room (RevPAR) for Q3 2024 was RMB380, down from RMB424 in Q3 2023 [4] Retail Business Performance - Gross merchandise value (GMV) from the retail business for Q3 2024 was RMB566 million, representing a 107.7% year-over-year increase [5] - Retail revenues for Q3 2024 increased by 104.0% to RMB480 million (US$68 million) from RMB235 million in Q3 2023 [12] Cost and Expense Analysis - Total operating costs and expenses for Q3 2024 were RMB1,442 million (US$205 million), up from RMB959 million in Q3 2023 [14] - Hotel operating costs for Q3 2024 were RMB876 million (US$125 million), compared to RMB617 million in Q3 2023 [15] - Selling and marketing expenses for Q3 2024 were RMB218 million (US$31 million), up from RMB112 million in Q3 2023 [18] Outlook - For the full year of 2024, the company expects total net revenues to increase by 48% to 52% compared to full-year 2023 [28]

Atour Lifestyle Holdings Limited (ATAT) is scheduled to release third-quarter 2024 results on Nov. 19, 2024.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The Zacks Consensus Estimate for ATAT’s third-quarter earnings per share is pegged at 38 cents, indicating 40.7% growth from 27 cents reported in the prior-year quarter. The consensus mark has increased 5.6% in the past 60 days.Image Source: Zacks Investment ResearchThe consensus mark for third-quarter revenues is pegged at $264. ...