Beijing Brigade Hotel (600258) Annual Report Review: Non-profit Profit Increases 16% and Planned to Open 800 Stores in 19

Beijing Brigade Hotel (600258) Annual Report Review: Non-profit Profit Increases 16% and Planned to Open 800 Stores in 19
Event: BTG Hotel released its 2018 annual report, and the company achieved revenue of 85 in 2018.39 ppm / + 1.45%, net profit attributable to mother 8.5.7 billion / +35.84%, net profit after deduction 690 ppm / +15.99%, non-recurring gains and losses mainly come from the sale of Yanjing Hotel, Shouqi shares and other investment gains; of which the company achieved revenue of 21 in the fourth quarter.700 million / + 3.1%, net profit attributable to mother, 5,551.70,000 yuan / -31.01%, net profit after deduction is 2,579.830,000 yuan / -48.41%.The company intends to distribute 0 to all shareholders.11 yuan (including tax). Opinion: During the asset-light expansion period, the growth rate of profit is greater than the growth rate of revenue.Revenue: The company achieved revenue of 85 in 2018.3.9 billion / + 1.45% of which hotel 80.8.9 billion / + 1.46% (like home 71.54 billion / + 1.45%, the first travel stock hotel 9.36 billion / + 1.57%), attractions 4.50 billion / + 1.26%.Total profit: The company’s total profit in 201812.8.6 billion / + 28.38%, of which hotel 11.08 billion / + 30.07% (as home 11.4.2 billion / + 19.08%), attractions 1.7.8 billion / + 18.80%.Net profit attributable to mother: In 2018, the company achieved net profit attributable to mother.5.7 billion / +35.84%, of which Home Inns contributed 8.1.1 billion / + 25.54%, Nanshan Scenic Area contributed RMB 97.97 million in profit and equity / + 20.03%.(1) As the hotel business directly operates the net closing of stores and franchise opening has accelerated, hotel revenue has grown at a high speed on the highway, but profits have grown rapidly.(2) The Q4 results were mainly due to the impairment of Goodwill of Nanyuan Co., Ltd. 8,189.630,000.(3) Total financial expenses of the company in 2018 1.7.2 billion, a decrease of 50.6 million / -22 over the same period last year.74%. The opening of Q4 has accelerated. In 2018, 450 stores were initially completed in excess of the plan, and the number of stores in 2019 was 夜来香体验网 increased to 800.18Q4 companies opened a total of 247 stores (Q1 / Q2 / Q3 / Q4 opened 84/135/156/247 respectively), of which 8/239 were directly opened / joined, and economic / mid-end / other were newly opened75/115/57 stores; 56 stores closed in Q4, of which 23/33 are directly operated / joined stores, 51/5/0 are closed in economy / mid-end / other stores; 191 are opened in Q4. At the beginning of 2018, the company opened a net of 337 stores (622 opened / 285 closed), including 38 directly operated nets / 375 franchised nets, and economical / mid to high end / other net opened-10/217/130 nets.The company’s store openings are led by high-end franchise mid-range stores, and its closed stores are led by direct-operated economic stores. The store structure continues to be optimized.As of the end of 18, the company had a total of 重庆桑拿网 4,049 hotels (including 3,890 such as homes), 530 of which have not yet opened and are currently contracting; such as homes account for 16% of high-end stores / increasing 4.6 pct, the proportion of directly-operated stores was 23% / down 3 year-on-year.2 pct.In 2019, the company plans to open more than 800 stores (450 stores in 18 years), of which mid-to-high-end accounted for more than 50%, and franchise accounted for more than 95%; the company will increase Home NEO 3 in 19 years.0 update efforts. The increase in house prices drove the growth of RevPAR in the same store, and the slowest month-on-month growth rate was in line with expectations.Considering the impact of the newly opened store’s climbing period, the operating data of all stores is distorted, and the same store data is more comparable.In 18Q4, the same home RevPAR increased by 1.4% (earlier 18Q3 chain down 1.0 pct, economic / mid-end and high-end same-store RevPAR increased by 1 respectively.5% / 0.3%, respectively down the chain from 0.9 points 1.1pc), in which the average house price increased by 3.7% (Economy / Mid-end High Increase by 3 respectively.7% / 3.2%), occupancy rate decreased by 1.9 pct (Economy / Mid-high end respectively -1.9pct / -2.4pct).For the whole year of 2018, the overall same-store RevPAR increased by 2.8% (Economic / Mid-end high increase by 2 respectively.7% / 2.3%), of which house prices also increased by 5.2% (Economy / Mid-end and High-end respectively increased by 5.twenty three.6%), occupancy rate decreased by 2.0 pct (reduced by economy / mid-range and high-end respectively by 2.0pct / 1.0pct).The adjusted rate of return has been transformed into a higher proportion of mid-end stores due to the impact of price increase strategies / direct store upgrades / downgrading macroeconomic pressures, and the reasonable level of overall occupancy should decrease.Judging from the absolute value of occupancy, Home Inn’s same-store occupancy rate in 2018 was 84.5% (Economy / Mid-end to 84.6% / 82.4%) is still at a healthy level, and there is room for subsequent price increases. The B & Q’s headquarters hotel & attractions business performed well.Hotel: RevPAR increased by 1 in all stores in 2018.4% (Economy / Mid-end and High-end respectively increased by 6.4% / 1.2%), of which the average house price increased by 0.4% (Economic / Mid-end high increase by 3 respectively.0% / 0.9%), the occupancy rate increased by 0.7 pct (economy / mid-to-high end increased by 2.4 pct / 0.2 pct). Attractions: 498 visitors to Nanshan in 2018.760,000 / + 1.9% of ticket income 2.4.9 billion / + 7.31% (since August 18, the ticket retention ratio has been increased from 40% to 50%); in 18 years Nanshan Company achieved revenue4.50 billion / + 1.26%, contributing equity profit of 97.97 million / + 20.03%. Investment suggestion: With the speed (quantity) of opening a store, the optimization of the structure (price), the expansion of light assets (the increase in profit margin), the long-term growth space of the hotel leader is determined;Optimize the brand, promote store upgrades, speed up the pace of opening stores, and at the same time equitable incentives are imminent, and the mechanism will streamline future development.It is expected that the company’s revenue for the years 19-21 will be 87.21 billion / 90.08 billion / 93.4.6 billion, net income attributable to mothers was 985 billion / 11.58 billion / 13.8.6 billion, corresponding PE is 22 times / 19 times / 16 times.Maintain “Buy” rating. Risk warning: Macroeconomic risks, store development is less than expected.