The Zhitong Finance App learned that CICC released a research report stating that it gave Shangri-La (Asia) (00069) the first “outperform the industry” rating, with an estimated EBITDA of 503/613 million US dollars in 23/24, and EBITDA (including joint ventures) of 819/976 million US dollars. I think Shangri-La is a leading mature luxury hotel with years of experience. The target price is HK$7.5. The bank believes that the market underestimates the effect of its RevPAR recovery and the recovery in business travel demand on profit resilience and the long-term value of its scarce property resources. Based on the fact that there is still room to increase the chain rate in the luxury hotel market and the excellent brand power that Shangri-La itself has accumulated, we are optimistic about achieving steady recovery and growth in terms of profit.

According to the report, the company's business model is an asset management model with the hotel business as the core and property investment as a supplement. 1) With its unique brand strength and service quality advantages supported by its own “Asian hospitality”, Shangri-La brings brand premiums and customer recognition. 2) Shangri-La continues to deploy high-end business travel and resort services at core locations in major cities in mainland China, Hong Kong, and Singapore. The bank believes that after the impact of the epidemic continues to weaken, with the gradual recovery of domestic and foreign business travel demand and consumer spending power, Shangri-La's asset management model is expected to help the company achieve better profit flexibility. 3) The company has a range of property resources located at core high-quality sites. Considering the relatively low cost of initial property acquisition and Shangri-La's long-term brand value accumulation, the company's assets have high long-term value and scarcity in the market.