Jinjiang Co., Ltd. (600754): The industry boom is still in the bottom-up phase and high growth support fundamentals

Jinjiang Co., Ltd. (600754): The industry boom is still in the bottom-up phase and high growth support fundamentals
Jinjiang shares disclosed operating data for April: Internal RevPar continued to fall 4.67% According to the company ‘s announcement on May 30, the company ‘s internal hotel RevPar in April 19 was 162.05 yuan, down 4 every year.67%, occupancy rate 76.68%, a decline of 5 per year.97pct, average house price is 211.33 yuan, an annual increase of 2.75%; RevPar for overseas hotels increased by 5.36%, occupancy rate and average house price increased by 2 respectively.86pct and increase 0.95%.In April, the company opened a net of 85 stores (net economy reduced by 15 and mid- to high-end net opened 100), with a total of 7,716 stores (4949 economy-type, 2767 mid- and high-end). The domestic hotel industry is at the bottom of the boom, RevPar’s decline has expanded, and overseas hotel operations have rebounded. The domestic 无锡夜网论坛 air passenger traffic growth rate in April was only 3.6%, the lowest growth rate since SARS in 2003, showing that the industry’s prosperity is at the bottom.Hotel occupancy rates in Jinjiang fell by 5 in April.97pct, a decrease compared to the previous two months (February, March decreased by 0.37, 5.17pct) expansion, the average house price increased by ten years.75%, an increase of 8 from the previous two months (February and March.7%, 6.1%), there is a clear trend, mainly due to the drag on the decline in rental rates.RevPar dropped by 4.7%, the decline is larger than the decline in March.Overseas hotel RevPar grows by 5 per year.36%, of which the occupancy rate increased by 2.86pct, the average house price increased by 0.95%. The speed of store expansion has improved, and the speed of opening of mid- to high-end hotels has 武汉夜生活网 increased significantly. In April, the company opened a net of 85 stores, opened 100 of mid-to-high-end hotels, and reduced the number of budget hotels by 15;The cumulative net openings (233) in the same period of the previous year accelerated, of which 304 were mid- to high-end hotels in the January-April period, with a cumulative net opening of 304, which is a clear acceleration trend compared with 208 in the same period of the previous year.As of the end of April 19, the company’s mid- to high-end hotels reached 2,767, accounting for 35.9%. Opening a store to support the company’s performance, waiting for the market to recover as expected, maintaining the “Buy” rating for 19 years. Affected by economic downturns. Tight budgets for SMEs have restrained business travel, and the hotel market demand has decreased significantly.During the growth period, the company has a favorable competitive advantage in the mid-to-high-end hotel field, accelerating the integration of the industry to acquire high-quality properties, and releasing high performance when the market picks up.The company’s EPS is expected to be 1 in 19-21.21/1.36/1.66 yuan / share, corresponding PE is 20/18/15 times.After excluding the impact of investment income, the company’s future non-net profit compound growth rate is about 15-20%, and the company’s average price-earnings ratio (TTM) has been 37 times in 14 years. Considering the integration trend of domestic hotels and the position of the company’s industry leader, Giving a reasonable value of 32 at 19 times PE in 19 years.67 yuan / share. Risk warnings: 1) The decline of the macro economy may affect the recovery of the industry.2) The internal integration effect of the company was less than expected.3) The progress of the company’s direct-operated stores was worse than expected.