JINJIANG HOTELS(600754) 中航证券·2025-04-23 08:25Investment 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% [1][10]. - The company experienced a decline in performance due to weak market demand and rising cost pressures, particularly in Q4 2024, where revenue fell to 3.273 billion yuan, a year-on-year decrease of 11.24% [1][10]. - The company is focusing on expanding its brand matrix and accelerating its asset-light franchise model, with plans to open 1,300 new hotels and sign 2,000 new contracts in 2025 [9][10]. Financial Performance Summary - In 2024, the company achieved 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’s total assets were reported at 46.109 billion yuan, with a debt-to-asset ratio of 65.99% [3][11]. - The company’s earnings per share (EPS) for 2025 is projected to be 1.06 yuan, with net profits expected to reach 1.133 billion yuan, reflecting a growth of 24.36% [10][11]. Business Strategy and Outlook - The company is enhancing its digital platform, WeHotel, which has reached 205 million effective members, and is integrating various digital channels to improve operational efficiency [9][10]. - The overseas business is undergoing restructuring, with a focus on transitioning to an asset-light model, which is expected to drive profitability in the long term [9][10]. - The company aims to optimize its brand structure and expand its franchise operations, which is anticipated to improve operational leverage and scale advantages [9][10].