20231030-国联证券-首旅酒店-600258.SH-盈利能力提升_中高端酒店扩张提速_3页_344kb

Summary of Beijing Hotel (600258) Q3 Report

Beijing Hotel (600258) reported strong performance in the third quarter of 2023, with significant revenue and profit growth. For the first nine months, the company's revenue reached 59.1 billion yuan, a year-on-year increase of 540%, and it achieved a net loss of 68 billion yuan, a remarkable turnaround from losses. In Q3 alone, revenue jumped by 528% to 23 billion yuan, with net profit of 40 billion yuan showing substantial growth.

Key operational metrics indicate a recovery: the occupancy rate (OCC) returned to 90% of pandemic levels, and the RevPAR recovery was 1166%, reflecting robust recovery across price segments. The company expanded its portfolio with 863 new stores opened in the first nine months, focusing on upscale hotels, while improving store quality and closure rates where necessary. By the end of September, total stores reached 6242, with a higher proportion of upscale offerings.

Financially, the gross margin and profit margins improved significantly, surpassing pre-pandemic levels in Q3. The company's 2023-2025 earnings forecast includes revenue projections of 77.4 billion, 89.2 billion, and 96.0 billion yuan, with respective growth rates of 521%, 15.2%, and 7.6%. Net profit is expected to grow from 80 billion to 118 billion yuan over this period.

The stock is rated "Buy" with a target price of 2080 yuan, based on high growth potential and brand strength. Risks include macroeconomic slowdown, slower store expansion, and subpar recovery compared to expectations.

Positive outlook supported by financial data showing improved ROE, net margins, and valuation metrics like a 24x PE for 2024.