Research Report Insights | Dongwu Securities: Initiate "Overweight" Rating for Junting Hotel, Direct Store Growth Expected to Boost Performance

Gelonghui February 13 — Dongwu Securities research report indicates that Junting Hotel, as a leader in mid-to-high-end select service hotels, achieves full coverage of mid-to-high-end and high-end business and resort brands. It is based on direct operation and light assets to realize nationwide expansion. It is forecasted that Junting Hotel’s net profit attributable to the parent company will be 20 million, 70 million, and 110 million yuan in 2025-2027, respectively, with corresponding PE valuations of 317, 88, and 57 times. As a flexible target, Junting Hotel is positioned in the high-end market, and the growth of direct-operated stores is expected to release performance. After Hubei Culture and Tourism became the controlling shareholder, growth space was opened, and resource integration increased profits. The first coverage assigns an “Increase” rating.