JINJIANG HOTELS(600754) 长江证券·2025-04-09 14:42Investment Rating - The report maintains a "Buy" rating for the company [2][9]. Core Views - In 2024, the company achieved total revenue of 14.063 billion, a year-on-year decrease of 4%, and a net profit attributable to shareholders of 911 million, down 9.06% year-on-year. The non-recurring net profit attributable to shareholders was 539 million, a decline of 30.32% year-on-year. Looking ahead, the company plans to continue a high opening rate, expecting to add 1,300 new hotels in 2025 and sign 2,000 new contracts [2][6]. - The company’s domestic hotel operations are under pressure, with a significant drop in RevPAR for limited-service hotels, particularly in the mid-range segment, which fell by 8.33% year-on-year. In contrast, overseas limited-service hotels saw a slight increase in RevPAR by 0.36% [11][12]. - The company’s gross margin decreased by 2.47 percentage points to 39.52%, while the expense ratio improved slightly, leading to a net profit margin decline of only 0.58 percentage points to 8.14% [11][12]. Summary by Sections Financial Performance - In Q4 2024, the company reported revenue of 3.273 billion, a year-on-year decline of 11.24%, and a net loss of 195 million, marking a shift to loss compared to the previous year [6]. - For the full year 2024, total revenue was 14.063 billion, with a net profit of 911 million and a non-recurring net profit of 539 million, reflecting significant declines [6][11]. Future Outlook - The company anticipates adding 1,300 new hotels and signing 2,000 new contracts in 2025, with organizational adjustments expected to enhance management efficiency [2][11]. - The company is focused on a "12+3+1" brand development strategy and aims to strengthen its three platforms: global hotel internet, global procurement, and global shared services [11][12]. Market Position - The company’s mid-range hotel segment has seen a notable increase in market share, with mid-range hotels now accounting for 60.13% of total hotels, up 1.94 percentage points year-on-year [11][12]. - The overall hotel market is experiencing increased competition due to a rise in new openings, which may impact the company's performance [11].