Dongguan Securities: jinjiang hotel buy rating

2022-06-02 0 By

Wei Hongmei of Dongguan Securities Co., Ltd. has conducted research on Jinjiang Hotel and released the research report “2021 Annual Report Review: Epidemic Suppression performance Repair”. The report gives a buy rating on Jinjiang Hotel, and the current stock price is 50.63 yuan.Jinjiang Hotel (600754) Event: The company released the 2021 annual report.The company achieved revenue of 11.339 billion yuan in 2021, 14.56% higher than the same period last year.Comments: Performance recovery slightly below expectations.In 2021, the company achieved total operating revenue of 11.339 billion yuan, with a year-on-year growth of 14.56%;Net profit of 100 million yuan, down 8.70%;The net profit deducted from non-returning parent was -122 million yuan, with a year-on-year loss of 548 million yuan, which was lower than the company’s 2021 performance guidance due to the impact of the epidemic.Among them, 2021Q4 achieved revenue of 2.99 billion yuan, up 3.26% year on year;The net profit of the deduction of non-return parent was -77 million yuan, a year-on-year loss of 187 million yuan.In 2021, the revenue of limited service hotel operation and management will reach 11.09 billion yuan, up 14.94% year-on-year, accounting for 97.8% of the main business revenue;The food and catering business achieved revenue of 249 million yuan, up 0.03% year on year, accounting for 2.2% of the main business revenue.Overall, the revenue in 2021 recovered to 75.1% of 2019, and the net profit of non-returning parents decreased significantly compared with the same period last year. It is expected to return to profitability in 2022.Overseas hotel business took the lead in recovery.In 2021, the company achieved operating revenue of 8.8 billion yuan in China, with a year-on-year growth of 12.66%.Overseas revenue of Mainland China reached 2.29 billion yuan, with a year-on-year growth of 24.63%. Overseas hotel business benefited from the relaxation of epidemic prevention policies by many European countries in 2021 and the recovery of liquor travel demand.The domestic revenue in Mainland China accounted for 79.35% of the hotel business, and the overseas revenue accounted for 20.65%, with the proportion of the overseas hotel business rising slightly.The number of newly opened hotels maintained a high level.By the end of 2021, the company had 10,613 hotels in operation.Among them, there were 9,692 franchised stores, accounting for 91.32% of the number of hotels opened, and 921 direct-operated stores, accounting for 8.68% of the number of hotels opened. The proportion of franchised hotels increased by 1.25 percentage points compared with the previous year.From 2018 to 2021, there were 749, 1071, 892 and 1207 net newly opened hotels respectively, with the number of newly opened hotels maintaining a high level.By the end of 2021, there are still 4,760 reserve stores signed by the company. In 2022, the company is expected to maintain a fast pace of new store openings and further expand its scale advantage.Q4 epidemic suppresses RevPAR.In 2021Q4, the average price, rental rate and RevPAR of mid-end hotels and budget hotels in Mainland China are 215.36 yuan/room, 62.18% and 133.91 yuan/room respectively, +4.08%, -14.68% and -11.2% year-on-year respectively.In the second half of 2021, due to the domestic scattered epidemic, the occupancy rate and RevPAR decreased slightly. However, among the hotels opened by the company, the middle end hotels accounted for 51.98%, supporting the average room price to recover slightly.Investment Advice: The company is the largest hotel group in China and the second in the world, with a high speed of opening new stores and sufficient reserve stores.It is estimated that the company’s earnings per share in 2022-2023 will be 0.90 yuan and 1.84 yuan respectively, and the current stock price will be 53.21 times and 26.16 times of PE respectively, maintaining the company’s “recommendation” rating.Risk tips: industry competition intensifies, macroeconomic downturn, industry policy risks, etc.The securities Star data center calculated according to the research report data released in the past three years, and the researcher team of Wei Hongmei of Dongguan Securities conducted in-depth research on the stock. The average accuracy of the forecast in the past three years was 62.35%, and the estimated net profit in 2021 was 313 million, and the estimated PE was 173.34 according to the current price conversion.The latest earnings forecast details are as follows: the stock in the recent 90 days a total of 20 institutions to give ratings, buy rating 8, overweight rating 11, neutral rating 1;The average institutional price target over the past 90 days is 63.93.Securities star valuation analysis tools show that Jinjiang Hotel (600754) good company rating of 2.5 stars, good price rating of 2 stars, valuation comprehensive rating of 2.5 stars.(Rating range: 1 ~ 5 stars, maximum 5 stars) The above content is collated by Securities Star according to public information, if you have any questions, please contact us.