Beijing Brigade Hotel (600258): Closed store upgrades dragged down revenue slightly staggered mid-to-high-end brands Yi Hong and Jia Hong continued to advance

Beijing Brigade Hotel (600258): Closed store upgrades dragged down revenue slightly staggered mid-to-high-end brands “Yi Hong” and “Jia Hong” continued to advance
Event: The company announced that it had a semi-annual report for the year of 19, and realized revenue of 39 in 19H1.90 trillion, a year of zero reduction.3%; net profit attributable to mother 3.68 ppm, a ten-year increase of 8.1%; EPS 0.37 yuan / share.Among them, 19Q2 achieved revenue of 20.47 ‰, a decrease of 1 per year.5%; net profit attributable to mother 2.94 ppm, a 10-year increase of 11.0%. As of the end of June 2019, company members1.1.2 billion, the proportion of the number of nights in the dwelling rooms of its own channels was basically the same as that of the same period last year, and remained at about 80%. Hotel operations have dragged down hotel business growth, and hotel management has grown steadily.19H1 hotel business achieved revenue 37.4 billion, down from 0 previously.5%.Among them, the hotel operation achieved revenue of 30.1.4 billion, a decrease of 2 previously.7%, mainly due to: ① the downturn in the hotel industry, the company made timely adjustments, closed some of the stores with poor profitability, and upgraded some stores at the same time, reducing the number of directly operated stores;There is the highest.Hotel management achieved revenue 7.2.6 billion, a 10-year increase of 10.0%, accounting for 1% of the hotel business revenue.8 PCT to 19.4%, mainly benefiting from the increase in the number of franchised hotels, from 2849 in 18H1 to 3206 in 19H1, followed by an increase of 12.5%. The expansion of the continued franchise model accelerated the transformation of mid-to-high end.In 19H1, the company opened a total of 234 new stores. From the perspective of the business model, it has 228 franchised stores (accounting for 97.4%), 6 directly operated stores; from the perspective of brand type, 71 high-end (30%).3%), 41 are economical, and the rest are management export hotels.As of June 30, 19, the company had a total of 4,117 hotels, of which 3206 franchise stores, the proportion increased slightly to 77.9%; 755 mid- to high-end hotels, the proportion increased to 18.3%.As of the end of June 2019, the budget hotel NEO 3 has been completed.0 Renovation of 286, accounting for 31 directly operated stores.4%. Diversified product layouts, “HYATT Yi 扉 UrCove” + “Jia Hong” became new highlights.Home Inns and Hyatt established a joint venture company to jointly launch the mid-to-high-end brand “Yiyi”. At present, the preparation work for the first batch of directly operated stores (Beijing, Shanghai) has begun and it is expected to open in the first half of 2020.The company and Chunqiu Group jointly built the first flagship store of the airport hotel chain “Jiahong” with the characteristics of aviation and tourism. It officially opened at Hongqiao Airport at the end of June, creating a combination of aviation, tourism, accommodation, shopping and sightseeing buses.The ecological chain brings into play the performance effect of the industrial chain. The 北京体验网 company actively promotes the diversification of hotel brands, and accurately targets the needs of different customer groups. In the future, it will further accelerate scale expansion and improve the product matrix. Maintain “Buy” rating.The company continued to increase franchise store expansion and mid-to-high-end transformation in 19 years. While serving business needs, it has dug deeper into leisure consumer demand and local consumer demand. Apparent data in the second half of the year will help stabilize and increase, it is recommended to pay attention, 18Q4Since the macroeconomic disturbance, the hotel industry has been under pressure. According to the company’s operating conditions, the net profit in 19-20 years will be 10.3/12.400 million adjusted to 9.5/10.500 million, corresponding to PE of 18X / 17X, maintaining the “buy” level. Risk Warning: Macroeconomic growth forecast, business activity downturn, store expansion less than expected