BTG Hotel (600258): 18-year performance meets expectations 19-year plan accelerates expansion

BTG Hotel (600258): 18-year performance meets expectations Expected 19-year plan to accelerate expansion
Event: The company released its 2018 annual report and achieved revenue of 85 in 18 years.3.9 billion (+1.45%), net profit attributable to mother 8.5.7 billion (+35.84%), deducting non-net profit 6.900 million (+15.99%), the proposed distribution of 0.11 yuan (including tax). The overall performance of investment points was in line with expectations, and Q4 was affected by asset impairment losses.The company released its 2018 annual report and achieved revenue of 85 in 18 years.3.9 billion (+1.45%), net profit attributable to mother 8.5.7 billion (+35.84%), non-recurring gains and losses1.6.7 billion, an increase of 1 every year.USD 3.1 billion, of which the sale of 20% equity of Yanjing Hotel generated pre-tax investment income1.2.6 billion (affecting net profit attributable to mother 0.9.5 billion), deducting non-net profit 6.900 million (+15.99%), of which Nanyuan Hotel accrued goodwill impairment of 0.820 billion.In Q4 of 18, it achieved revenue of 21 in a single quarter.700 million (+3.1%), net profit attributable to mother 0.5.6 billion (-31.01%), deducting non-net profit of 0.2.6 billion (-48.41%), mainly due to the provision for asset impairment losses.110,000 yuan (mainly goodwill impairment), after excluding the project, the operating profit growth rate in the single quarter was about 23% (Q1-3 operating profit growth rate was 45% / 16% / 36%). Home Inns’ net profit growth is good.Hotel operation revenue 66.55 billion (-0.33%), gross profit margin (93.49%) decreased by 0.48pct, mainly due to breakfast promotions; hotel management business revenue14.34 billion (+10.70%), gross margin 100% (+0.01pct).Hotel business combined revenue 80.8.9 billion (+1.46%), of which Home Inns revenue was 71.5.4 billion (+1.45%), net profit attributable to mother 8.1.1 billion (+25.54%); BTG’s stock hotel revenue was 9.3.6 billion (+1.57%). Operating data for Q4 was weak due to economic fluctuations.4Q18 was affected by economic fluctuations, such as the home economy RevPAR at least flat (QoQ-1.7pct is mainly due to the decrease in the increase in house prices, and the decline in the occupancy rate is flat). The overlap of new and open stores in the mid-to-high end overlaps with the decline in RevPAR4.7% (QoQ-0.1pct, mainly due to the expansion of the occupancy rate decreased by 0.3pct), such as home single season integrated RevPAR + 2.8% (QoQ-1.3pct) mainly benefit from the drive brought by the structural upgrade; directly operated RevPAR + 5.1%, represented by joining RevPAR + 1.9%, related to the efficiency improvement, upgrading and upgrading of directly operated stores.4Q18 Home Inn Same Store RevPAR + 1.4% (QoQ-1pct), mainly due to a 3% increase in house prices.Driven by 7%, the price increase has dropped by 0.9pct, occupancy rate drops by 1 every year.9pct, the decrease is reduced by 0.1pct; of which the same-same type RevPAR + 1.5% (QoQ-0.9pct), mid-to-high-end RevPAR + 0.3% (QoQ-1.1pct). The business disturbance in the second half of the year led to an expected improvement in operating growth over the previous 17 years.18 Preliminary Home Integrated RevPAR + 4.2% (17 + 6.9%), mainly affected by the price increase of 7.Driven by 4%, the occupancy rate drops by 2 every year.5pct; of which RevPAR + 1 is economical.9%, high-end RevPAR-5.0%, both tonnage growth rate over 17 years.18 Junior Home Inn Same Store RevPAR + 2.8% (17 + 5.1%), RevPAR + 2 of economy same store.7%, high-end RevPAR + 2.3%, the growth rate is 2 respectively.Two, five and three.RevPAR +1 for the first stock of the first trip in 18 years.4% (June’17.7%). Driven by joining expansion, the proportion of high-end and high-end has increased rapidly.622 previously opened stores, 208 economy, 243 mid- to high-end, and 171 others (including 155 management output hotels); net opening of 337 (44 new direct stores, 82 closed stores, and 578 new stores)(Closed 203 stores).As of the end of 2018, 4,049 hotels were opened, of which 720 were mid- to high-end, accounting for 17.8%, an increase of 4.2pct; 87,094 rooms in middle and high-end hotels, accounting for 21.9%, an increase of 4.5 points.At the end of 18, there were 530 shops that had not been opened and were signing contracts. The ticket revenue of Nanshan Scenic Area increased steadily, and the non-ticket revenue income of the product sales sub-lease model affected.Scenic business revenue 4.5 billion (+1.26%), including ticket income 2.4.9 billion (+7.31%), mainly due to: 1) the number of visitors to the Nanshan Scenic Area for 18 years was 498.760,000 person times (+1.9%); 2) From August 18, the ticket retention ratio increased from 40% to 50%.The conversion of the commodity sales business to a pure lease model resulted in gross profit margin (91.48%) increase by 2.35pct, non-ticket income decreased by 5.4%.Net profit of subsidiaries1.3.1 billion (+20.03%). The number of directly-operated hotels has decreased, and financial costs have been reduced to improve profitability.The 18-year sales expense ratio was 65.7% (-2.25pct), mainly due to the decrease in the number of rooms in directly operated hotels and the expiration of depreciation of some assets.Management expense rate 12.04% (+0.98pc), mainly due to the increase in labor costs of franchise stores and the cost of IT maintenance outsourcing projects. R & D expense ratio is 0.35% (+0.14pct), information-based coding.Finance expense ratio 2.01% (-0.63pct), short-term borrowings decreased by 7.400 北京夜网 million, long-term borrowings reduced by 500 million. The 19-year plan was sound and the core strategy continued.19-year operating target revenue scale of 8.6-8.8 billion (+0.7?3%), stable planning; continue to promote the core strategy: 1) upgrade the existing hotels, promote Park Hotel Aishang, Home Inn Select Hotel (upgraded version), YUNIK HOTEL, Home Inn Business Hotel (Gold Standard), Home Inn 3.The implementation and promotion of new products such as 0NEO have been implemented in 155 home-operated stores in 18 years.0NEO renovation and upgrade, of which 115 have been completed, 19 hotels will be increased in 19 years.0 update efforts.2) Accelerating expansion of mid- to high-end + franchise stores.In 18 years, 29 middle- and high-end hotels were newly built and upgraded, and the proportion of mid-to-high-end hotels’ income 厦门夜网 increased to 32.6%, plans to open more than 800 new stores in 19, accelerated store openings, of which more than 50% of high-end accounted for more than 35% of revenue, franchise stores accounted for more than 95%. 3) External cooperation and internal innovation.Actively promote the rapid landing of Home Inn and Hyatt joint venture hotel products. The first batch of directly operated stores in Beijing and Shanghai is planned to open in the first half of 2020; strengthen the airport hotel chain brand and cooperate with Chunqiu Group;Selected Chuansha Pudong Airport Store was officially opened as a new brand product; innovative trials such as “Joynature Park”, “Man Space”, and derivatives were carried out internally.3) Information construction continues.By the end of 2018, the membership had reached 1.100 million nights occupied by own channels accounted for nearly 80%. Profit forecast: It is estimated that the net profit attributable to mothers will be 10-19 years.10, 11.76, 13.5.6 billion, a growth rate of 17.8%, 16.4%, 15.4%, earnings per share is 1.03, 1.20, 1.39 yuan, corresponding to 22, 19, 16 times the current expected PE. Risk Warning: Macroeconomic fluctuations, less-than-expected business expansion, and increased competition.