JINJIANG HOTELS(600754) 中航证券·2025-04-23 06:42Investment Rating - The investment rating for the company is "Buy" with an expected return exceeding 10% relative to the CSI 300 index over the next six months [12]. Core Views - The company reported a revenue of 14.063 billion yuan in 2024, a decrease of 4.00% year-on-year, and a net profit attributable to shareholders of 911 million yuan, down 9.06% year-on-year. The adjusted net profit after excluding non-recurring items was 539 million yuan, a decline of 30.32% year-on-year [1][10]. - The company experienced a decline in performance due to weak market demand and rising cost pressures, with a gross margin of 39.52%, down 2.47 percentage points year-on-year, and a net margin of 8.14%, down 0.58 percentage points year-on-year [1][10]. - The company plans to open 1,300 new hotels and sign 2,000 new contracts in 2025, aiming to enhance its brand structure and operational efficiency [9][10]. Summary by Sections Financial Performance - In Q4 2024, the company achieved a revenue of 3.273 billion yuan, a year-on-year decrease of 11.24%, and a net profit of -195 million yuan, marking a shift to negative profitability [1][10]. - The annual revenue for 2024 was 14.063 billion yuan, with a year-on-year growth rate of -4.00%, while the net profit attributable to shareholders was 911 million yuan, reflecting a decline of 9.06% [10]. Business Segments - The hotel room business generated a revenue of 5.517 billion yuan in 2024, down 10.94% year-on-year. Other segments, including continuous franchise and labor dispatch services, saw varied performance with revenues of 4.797 billion yuan (+2.46%) and 999 million yuan (+2.68%) respectively [10]. - The company added 968 hotels in 2024, with a focus on expanding its asset-light franchise model, resulting in a total of 13,416 hotels and 1.291 million rooms by the end of 2024 [9][10]. Digital Transformation - The company has enhanced its digital platform, WeHotel, which reached 205 million effective members by the end of 2024, integrating various customer engagement channels [9][10]. - The GPP global procurement platform aims to standardize operations and reduce costs across hotel lifecycle management [9][10]. Future Outlook - The company anticipates a recovery in performance driven by the ongoing recovery in the cultural and tourism market, operational adjustments, and improvements in overseas business [9][10]. - Forecasts for net profit attributable to shareholders are 1.133 billion yuan, 1.389 billion yuan, and 1.668 billion yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 1.06 yuan, 1.30 yuan, and 1.56 yuan [10].