Rating One: Jinjiang Hotels' reforms show results, riding the industry boom, with performance expected to be released by 2026.

On March 27, Jinjiang Hotels released its 2025 annual report. For the full year, it achieved operating revenue of 13.811 billion yuan, a slight year-over-year decline of 1.79%. Net profit attributable to shareholders was 925 million yuan, up 1.58% year over year. Excluding non-recurring items, net profit was 945 million yuan, up significantly by 75.19% year over year. Yi Finance’s “Yi Rating” believes the company’s 2025 performance exceeded market expectations; the turning point in its domestic operations has already appeared, and in the future it is expected to unlock performance upside.

According to “Yi Rating” analysis, in 2025 the company’s hotel business overall performed well. The number of hotels under its umbrella increased to 14,132. Among them, the proportion of mid-to-high-end properties rose to 63.5%, and the quality of new openings continued to improve. The net profit attributable to shareholders of domestic hotels grew 23.9% year over year. In particular, the decline in limited-service hotels’ RevPAR (revenue per available room) narrowed to 2.9%. In addition, reforms and efficiency improvements in the overseas hotel business were further advanced.

“Yi Rating” believes that effective control of costs and expenses became an important support for the company’s profit improvement in 2025 that exceeded expectations. Last year, the company’s selling, administrative, and financial expense ratios decreased by 0.3, 1.7, and 0.7 percentage points year over year, respectively. Operating efficiency improved significantly, driving the full-year non-recurring items excluded net profit margin to increase by 3.0 percentage points year over year to 6.8%.

In summary, according to “Yi Rating” analysis, a turning point in the domestic core business operations of Jinjiang Hotels has already emerged. Improvements in supply and demand in the domestic hotel industry, together with the continuous advancement of the company’s reforms at home and abroad, suggest that performance upside is likely to be gradually realized. However, the company’s medium- to long-term valuation-for-value is only average; “Yi Rating” is optimistic about the opportunities for performance improvement brought by a near-term rebound in industry conditions.

According to “Yi Rating”’s rating system, Jinjiang Hotels’ growth potential is 1.5 stars, earnings trend is 3 stars, industry structure is 3.5 stars, and its moat is 4 stars. “Yi Rating”’s DDM valuation model shows that the company’s intrinsic value is 29.7 billion yuan.

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