20230821-招银国际-Remain_cautiously_optimistic_after_a_solid_2Q23_11页_1mb

Atour Lifestyle (ATAT US) Investment Summary:

• Q2 2023 Performance: Exceeded expectations with revenue up 112% YoY (US$1.1bn) and net profit growth of 289% (US$21mn payout). Driven by strong RevPAR recovery and improved retail margins.

• FY2023 Guidance Update: Raised FY2023 revenue outlook for RevPAR (to 113%-117%) and sales growth (72%-76%), boosting adj. EBITDA/profit estimates. Maintains cautious stance due to macro risks.

• Retail Business Boom: Retail sales surged 222% YoY (RMB247mn) with high GP margins, aided by e-commerce and product popularity.

• Hotel Expansion: 1H2023 new hotel openings at 24% YoY. Atour Light 3.0 shows strong appeal with high affordability and franchise potential, aiming for 250-300 outlets by FY2025.

• Analyst Recommendation: BUY rating reiterated with target price raised to US$23.91 (+18.7%). Valuations show attractive multiples (30x FY2023P/E, 16x EV/EBITDA), supporting the favorable view.

• Risk: Continued macro deterioration could prompt exits; recent performance mixed, but overall outlook positive.