JINJIANG HOTELS(600754) 东吴证券·2024-12-25 06:26Investment Rating - The report maintains a "Buy" rating for Jinjiang Hotels, projecting a significant recovery in profitability and market position over the next few years [2][11]. Core Views - Jinjiang Hotels, as China's largest hotel chain, is expected to leverage its brand and operational strengths for continued network expansion. The company is positioned to recover profitability as business travel demand rebounds, following a period of strategic resource integration during the pandemic [2][12]. - The acquisition of minority stakes in the Plateno brand is anticipated to enhance Jinjiang's market share and profitability, with projected net profits from these acquisitions contributing approximately 1.6 billion yuan [12][13]. Financial Summary - The forecasted net profits for Jinjiang Hotels from 2024 to 2026 are 1.24 billion yuan, 1.42 billion yuan, and 1.53 billion yuan, respectively, with corresponding P/E ratios of 22.61, 19.80, and 18.34 [2][11]. - The total revenue for 2024 is projected at 14.20 billion yuan, with a slight decrease from 2023's 14.65 billion yuan, followed by a gradual increase in subsequent years [11][12]. - The company's total assets are expected to remain stable around 50 billion yuan, with a slight increase in shareholder equity from 16.68 billion yuan in 2023 to 20.55 billion yuan by 2026 [7][11]. Market Data - The closing price of Jinjiang Hotels is reported at 26.24 yuan, with a market capitalization of approximately 28.08 billion yuan [15]. - The company has a price-to-book ratio of 1.65, indicating a reasonable valuation relative to its equity [15]. Industry Outlook - The hotel industry is expected to see a balance in supply and demand by 2025, with RevPAR projected to stabilize. Jinjiang Hotels is anticipated to outperform the industry due to its strategic expansions and operational efficiencies [12][13].