BTG Hotel (600258) 2018 Annual Report and 2019 First Quarterly Report Comments: 19Q1 Performance Under Pressure and Gradually Opening Stores Expected to Increase Significantly

BTG Hotel (600258) 2018 Annual Report and 2019 First Quarterly Report Comments: 19Q1 Performance Under Pressure and Gradually Opening Stores Expected to Increase Significantly
18-year income is stable, and the increase in net profit after deduction of 16% is in line with expectations: 18-year revenue is 85.3.9 billion / + 1.45%, net profit attributable to mother 8.5.7 billion / +35.84%; deduct non-attributed net profit 6.90 billion / + 15.99%, the difference caused by the disposal of 20% equity of Yanjing Hotel and compensation brought non-recurring gains and losses1.6.7 billion.EPS0.88 yuan, in line with expectations.Gross margin 94.47% /-0.17 points.Finance rate 2.01% /-0.63pct, due to the repayment of some bank borrowings, the financial expenses decreased by 50.6 million; the sales expense ratio was 65.70% /-2.25pct, mainly due to the decrease in the number of directly operated hotels resulting in reduced employee compensation and depreciation amortization; management fee rate 12.39% / + 1.13pct, due to the increase in the number of franchised stores, the manager ‘s budget increased and the investment in IT maintenance expansion projects increased. In terms of business, the main business hotel business continued to grow profit — hotel business income of 80.8.9 billion / + 1.46% profit11.08 billion / + 30.07%, of which Home Inns Group revenue was 71.54 billion / + 1.45% of total profit11.42 billion / + 19.08%.In essence, the business income of the scenic spot4.50 billion / + 1.26%, profit 1.7.8 billion / + 18.80%. Of which 18Q4 revenue was 21.70 billion / + 3.1%, net profit attributable to mother 0.5.6 billion / -31%, due to the provision for impairment of goodwill of Nanyuan 81.9 million.Deduct non-net profit 0.300 million / -48.4%, operating costs + 14% due to increased breakfast promotion.1Q1 revenue 19.4.4 billion / + 0.99%, net profit attributable to mother 0.7.4 billion / -1.90%, deducting non-net profit 0.56 billion / -3.04%, mainly due to the current industry environment is still at the bottom, operating data has further declined. The opening of stores has been accelerating year by year, and the Revpar has improved in 19Q1. The number of openings: 622 newly opened in 18 years / a net increase of 337 to 4049, accelerated opening; among them, the number of economic / mid-to-high end / other hotels opened was 208/243/171, Middle and high-end accounted for 39%; In addition, 578 new franchise stores opened, accounting for 93% of new stores, the proportion of franchise further 合肥夜网 increased; 38 directly-managed stores closed the net.In 19Q1, 75 new stores were opened with a net increase of 12. The company expects to open 800 new stores in 19 years, which is significantly higher than the target of 450 new stores in 18 years. Operating data: 1) Home Inn 18 Year Revpar 156 yuan / + 4.2%, average house price is 188 yuan / + 7.4%, occupancy rate 83% / -2.5 points.The economical Revpar is 143 yuan / +1.9%, occupancy rate is 84% /-1.9pct, average house price is 170 yuan / + 4.3%; mid- to high-end affected by the newly opened store climbing period intensity, Revpar: 238 yuan / -5%, the average price of 308 yuan / -1.5%, occupancy rate 77.1% / 2.8 points.2) Affected by the macroeconomic superposition of newly opened stores and closed stores, the growth rate of Revpar in 19Q1 (-0.5%) score 18Q1-Q4 (+4.0, 5.6,4.1/2.8%).3) Same store data: 18 years Revpar overall 154 厦门夜网 yuan / + 2.8%, 19Q1 overall Revpar 135 yuan / -3% profit forecast and evaluation: the company’s target revenue for 19 years is 8.68 billion / + 0.7?3.1%, it is expected that the number of direct-operated stores in 19 will still decrease, so the EPS for 19-20 is reduced to 0.95/1.09 yuan, adding 21 years of EPS forecast to 1.31 yuan, considering the recovery of the industry still has to wait, temporarily downgraded to “overweight” level. Risk warning: economic activity declines, franchise expansion is less than expected, stock lifting risk in December