Jinjiang Hotel (600754): Q3 operating side slightly distorted cost optimization optimization led to better-than-expected results

Jinjiang Hotel (600754): Q3 operating side slightly distorted cost optimization optimization led to better-than-expected results
The company released three quarterly reports, and achieved revenue of 112 in the first three quarters of 19 years.82 ppm / + 2.97%, realizing net profit attributable to mother 8.7.3 billion / + 0.15%, realizing net profit deduction for non-return to mother 8.00 ppm / + 18.08%, performance exceeded expectations.Single third quarter: Q3 achieved revenue of 41.$ 3.9 billion / + 3.04%, achieving net profit attributable to mother 3.05 ppm / -17.10%, net of non-attributed net profit4.42 ppm / + 22.09%, the profit side improved significantly.The difference before and after the deduction is mainly due to the loss caused by the decline in the fair value of the financial assets at the end of the period.1.4 billion. Core point of view of store opening and transformation: Store opening speed has accelerated.(1) New store openings: 1,107 newly opened hotels in the first three quarters and 447 newly opened in a single quarter.(2) Net new store openings: In the first three quarters, there was a net increase of 718 stores, of which 21 were directly operated hotels and 739 were added to franchise hotels.In the third quarter alone, there were 312 net openings, of which 6 were directly managed and 318 were increased.(3) Signing of the contract.12,390 hotels have been signed in the first three quarters, and 4,541 have been signed in the third quarter alone.Store openings 深圳桑拿网 and reserves are in good condition, showing brand recognition. Overall regional operating conditions: house prices have changed from positive to negative, and the occupancy rate has decreased slightly. RevPAR is still under pressure in the third quarter.(1) In the third and third quarters, the average RevPAR of hotels within the company was 169.08 yuan / -1.49% (RevPAR +0 in the second quarter.68%), occupancy rate 78.49% /-4.16pct (Q2 is -3.9pct), the price is 215.41 yuan / -3.73% (+6 in the second quarter.02%).(2) The sub-structure is as follows, the budget hotel RevPAR 126.0 yuan / -8.12% (RevPAR-6 in the second quarter.22%), the occupancy rate is 75.94% /-5.6pct, average house price is 165.92 yuan / -1.34%.(3) Mid-range hotel RevPAR 213.53 yuan / -5.66% (Q2RevPAR-4.94%), the occupancy rate is 81.13% /-3.27pct, average house price is 263.19 yuan / -1.86%. Overall overseas operations: overall and structural leasing rates and house prices continue to contribute positively.(1) In the third and third quarters, the company’s overseas hotels average RevPAR 40.32 Euro / + 2.13% (Second quarter RevPAR +2.86%), the occupancy rate is 69.55% / + 0.35pct (Q2 is +0.52pct), house price 57.97 Euros / +1.61% (+2 in the second quarter.02%).(2) The sub-structure is as follows: RevPAR 39, a budget hotel. 29 / +1.63% (RevPAR +0 in the second quarter.63%), the occupancy rate is 72.32% /-0.08pct, average house price 54.33 euros / +1.55%. (3) Mid-range hotel RevPAR 42.77 Euro / + 3.28% (RevPAR + 8 in the second quarter.32%), the occupancy rate is 62.88% / + 0.91pct, average house price 68.02 Euro / +1.78%. Driven by cost optimization, the company’s performance exceeded market expectations.Under the pressure of volume and price at the operating end of q3, the company effectively controlled the integration of costs and realized the high-speed growth in the trend of deducting non-performance.The high-level M & A integration in the early stage has pushed up the company’s expenses to a certain extent. At present, the company’s optimization is steadily advancing, and the effect is gradually emerging, and the space for follow-up is still large.As the world’s leading giant in housing volume, the company’s brand quality and echelon’s constructive competitiveness, escorted by the stable genes of state-owned enterprises, we continue to be optimistic about its long-term high-level and large potential. The financial forecast and investment recommendations are attributed to the company’s continuous non-recurring gains and losses in the third quarter, and we adjusted the company’s EPS for 19-21 to 1.17/1.42/1.67 yuan (1 before adjustment.30/1.49/1.76 yuan), using comparable company law to give 22 times PE for 20 years, corresponding to a target price of 31.24 yuan, maintain BUY rating. Risk warning: changes in property rents and expense ratios, emergencies and natural disasters, RevPAR falls short of expectations