China's Atour Lifestyle Q1 revenue jumps 47.5% on manachised hotel expansion

Overview

• China hospitality and retail group's Q1 revenue rose 47.5% yr/yr to RMB2.81 bln

• Adjusted net income for Q1 grew yr/yr to RMB490 mln

• Company expanded hotel network by 20.9% yr/yr to 2,088 hotels

Outlook

• Company expects 2026 net revenues to rise 24% to 28% from 2025

Result Drivers

• MANACHISED HOTEL EXPANSION - Revenue growth was mainly driven by an increase in manachised hotels and supply chain business development

• RETAIL BUSINESS GROWTH - Retail revenue rose due to growing brand recognition and product innovation, broadening product offerings

• LEASED HOTEL REDUCTION - Leased hotel revenue declined due to a decrease in the number of leased hotels as a result of product mix optimization

Company press release: ID:nGNX2LLl75

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Atour Lifestyle Holdings Ltd is $51.00, about 33% above its May 12 closing price of $38.36

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago

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