Jinjiang Hotel (600754): Operating data surpasses expectations to improve store opening efficiency and support performance

Jinjiang Hotel (600754): Operating data surpasses expectations to improve store opening efficiency and support performance
Investment Highlights: The performance is in line with expectations, and the holdings are increased.Considering the impact of macroeconomic fluctuations on performance, the EPS for 2019/20/21 is reduced to 1.14/1.25/1.37 (-0.01 / -0.06 / -0.09) RMB / share, giving the industry an average of 25xPE in 2020, lowering the target price to 31.25 yuan.  Brief description of results: 2019Q1-Q3 achieved revenue 112.800 million / + 2.97%, net profit attributable to mother 8.7.3 billion / + 0.15%, deducted non-net profit attributable to mother 7.9.9 billion / + 18.08%.The third quarter revenue was +3.04%, net profit attributable to mother -17%, non-net profit attributable to mother +22.09%.  The actual performance of operating data exceeded expectations.①Q1-Q3 Hotel income +2.92%, territory +4.27%, overseas -0.44%, food +6.32%; Jinjiang’s own subsidiaries profit -15.22%; Louvre-5.63%; Platinum Tao +10.98%; Vienna +32.12%; ② RevPAR-1 overall.The 49% decline in the second quarter expanded, but the mid-to-high end occupancy rate fell by -3.27pct ratio H1 narrowed, same store RevPAR-3.55%, narrowed according to H1; middle and high-end rental rate -1.55pct, ratio H1 and Q1 (-2.47 points, -3.48pct) narrowed; ③ 2019 Q1-Q3 company opened 1,107 new hotels, opened 389 hotels, a net increase of 718 opened hotels, a total of 8,161 opened hotels.  The impact of cycle on performance is excessively limited, and store opening and efficiency improvement support 杭州桑拿网 performance.① The third-quarter operating data performed the best (same store RevPAR Jinjiang-3.55% vs Huazhu -3.70% VS First Brigade-6.10%), and only Jinjiang ‘s mid-to-high-end leasing rate has narrowed. The above operating data has eased the decline in the performance of the company ‘s newly opened stores in the competitive market; ② The store opening plan has been basically completed, which has supported performance: upfront service fee incomeMaximum + 52%; ③ The sales expense ratio and management expense ratio return to normal levels, driving the profit margin to improve.  Risk reminder: the risk of macroeconomic fluctuations, store growth is slower than expected.