External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Atour Lifestyle Holdings / Equity Bottom-Up

<ul><li>3Q23 results were a beat and FY23E guidance was raised (mostly about retail).</li><li>While we are conservative about the Hotel sector in 4Q23E and 1Q24E, we still think Atour could outperform, thanks to its excellent price to quality.</li><li>Moreover, in the long run, we are fairly excited by its product expansions (e.g. Atour Light 3.0 and Atour 4.0, which are able to capture more new customers outside of their previous price range) and room for growth and consolidation in China</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

3Q23 results were a beat and FY23E guidance was raised (mostly about retail).While we are conservative about the Hotel sector in 4Q23E and 1Q24E, we still think Atour could outperform, thanks to its excellent price to quality.Moreover, in the long run, we are fairly excited by its product expansions (e.g. Atour Light 3.0 and Atour 4.0, which are able to capture more new customers outside of their previous price range) and room for growth and consolidation in ChinaContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Atour Lifestyle (ATAT US) – Guidance Raised and We Stay Positive in LT

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

<ul>
<li>Atour reported 3Q23 revenue 6.4%/17.1% higher than our estimate/consensus, non-GAAP NI 5.5%/9.1% higher than our estimate/consensus.</li>
<li>We expect Atour 4Q23/2023 RevPAR recovered to 107%/114% of 2019 level, and revenue to increase 104%/96% YoY respectively. </li>
<li>We maintain the stock as BUY rating, and raised TP by US$1 to US$37.5, reflecting the rapid growth of retail product sales. </li>
</ul>


Atour reported 3Q23 revenue 6.4%/17.1% higher than our estimate/consensus, non-GAAP NI 5.5%/9.1% higher than our estimate/consensus.
We expect Atour 4Q23/2023 RevPAR recovered to 107%/114% of 2019 level, and revenue to increase 104%/96% YoY respectively. 
We maintain the stock as BUY rating, and raised TP by US$1 to US$37.5, reflecting the rapid growth of retail product sales. 


[Atour Lifestyle (ATAT US, BUY, TP US$37.5) Target Price Change]: Brand Value Brings Premium Sales

Thematic (Sector/Industry)

<ul>
<li>ATAT: Atour Group launches new version of Atour 4.0, higher price with better return(+)</li>
<li>XPEV/NIO/LI:  Huawei Chery Luxeed announce specs and pricing, impacting mostly high end sedans (-)</li>
<li>981.HK/ 1347.HK/ ACMR: China lithography supplier planning A-share listing (+)</li>
</ul>


ATAT: Atour Group launches new version of Atour 4.0, higher price with better return(+)
XPEV/NIO/LI:  Huawei Chery Luxeed announce specs and pricing, impacting mostly high end sedans (-)
981.HK/ 1347.HK/ ACMR: China lithography supplier planning A-share listing (+)


[Blue Lotus Daily] Xiaomi 1810.HK/XPEV/NIO/LI/1211.HK/ATAT/BEKE/LKNCY/981.HK/1347.HK/ACMR

<ul>
<li>CPNG/BABA/PDD : Coupang sacrifices profitability for growth in 3Q23 (-/+/+)</li>
<li>LI/XPEV/NIO/TLSA1211.HK: Tesla raises prices for Model 3 + Model Y on November 9th (+)</li>
<li>ZLAB: ZLAB's Q3 revenue slightly lower than our estimates, R&amp;D compressed profits</li>
</ul>


CPNG/BABA/PDD : Coupang sacrifices profitability for growth in 3Q23 (-/+/+)
LI/XPEV/NIO/TLSA1211.HK: Tesla raises prices for Model 3 + Model Y on November 9th (+)
ZLAB: ZLAB's Q3 revenue slightly lower than our estimates, R&amp;D compressed profits


[Blue Lotus Daily]: LI/XPEV/NIO/TSLA/ATAT/HTHT/ZLAB/ACMR/CPNG/BABA/PDD/BEKE

<ul>
<li>China hotel supply shortage haven’t fully recovered from Covid, the total hotel volume is still 11% lower than pre-Covid level in 2023, we expect a full recovery in 2024.</li>
<li>Due to the continue of hotel supply shortage, we think hotel groups in China can still enjoy the premium pricing in the next 6-12 months.</li>
<li>We think Atour has better fundamentals than Huazhu/Jinjiang/BTG, in terms of 1) hotel room scale leverage; 2) RevPAR quality; 3) upper midscale class positioning and less burden in legacy brands.</li>
</ul>


China hotel supply shortage haven’t fully recovered from Covid, the total hotel volume is still 11% lower than pre-Covid level in 2023, we expect a full recovery in 2024.
Due to the continue of hotel supply shortage, we think hotel groups in China can still enjoy the premium pricing in the next 6-12 months.
We think Atour has better fundamentals than Huazhu/Jinjiang/BTG, in terms of 1) hotel room scale leverage; 2) RevPAR quality; 3) upper midscale class positioning and less burden in legacy brands.


[Blue Lotus Lodging Sector Update]: Dividend from Supply Shortage Can Continue into 2024

China

Atour Lifestyle Holdings Limited operates as a holding company. The Company, through its subsidiaries, owns and manages midscale hotel chain through offline and online channels, including mobile application and weixin-wechat mini program. Atour Lifestyle Holdings serves customers in China.

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Atour Lifestyle Holdings (ATAT US)

Atour Lifestyle (ATAT US) – Guidance Raised and We Stay Positive in LT

While we are conservative about the Hotel sector in 4Q23E and 1Q24E, we still think Atour could outperform, thanks to its excellent price to quality.

CMB International

[Atour Lifestyle (ATAT US, BUY, TP US$37.5) Target Price Change]: Brand Value Brings Premium Sales

Atour's 3Q23 revenue and non-GAAP NI exceeded estimates, and we predict strong recovery in RevPAR and revenue for 4Q23 and 2023. We maintain a BUY...

Blue Lotus Research Institute

[Blue Lotus Daily] Xiaomi 1810.HK/XPEV/NIO/LI/1211.HK/ATAT/BEKE/LKNCY/981.HK/1347.HK/ACMR

Atour Group releases Atour 4.0 with improved features. Huawei Chery Luxeed's specs and pricing announcement affects high-end sedans negatively....

Blue Lotus Research Institute

[Blue Lotus Daily]: LI/XPEV/NIO/TSLA/ATAT/HTHT/ZLAB/ACMR/CPNG/BABA/PDD/BEKE

Coupang prioritizes growth over profitability, Tesla increases prices for Model 3 and Model Y, ZLAB's Q3 revenue falls short of estimates.

Blue Lotus Research Institute

[Blue Lotus Lodging Sector Update]: Dividend from Supply Shortage Can Continue into 2024

China hotels can continue to enjoy the premium pricing in the next 6-12 months, thanks to supply shortage in reopening. Atour (ATAT) looks...

Blue Lotus Research Institute

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52-week Range

Market Cap (USDm)

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Dividend (Yield)

Atour Lifestyle (ATAT US) – Guidance Raised and We Stay Positive in LT

While we are conservative about the Hotel sector in 4Q23E and 1Q24E, we still think Atour could outperform, thanks to its excellent price to quality.

CMB International

[Atour Lifestyle (ATAT US, BUY, TP US$37.5) Target Price Change]: Brand Value Brings Premium Sales

Atour's 3Q23 revenue and non-GAAP NI exceeded estimates, and we predict strong recovery in RevPAR and revenue for 4Q23 and 2023. We maintain a BUY...

Blue Lotus Research Institute

[Blue Lotus Daily] Xiaomi 1810.HK/XPEV/NIO/LI/1211.HK/ATAT/BEKE/LKNCY/981.HK/1347.HK/ACMR

​Atour Group releases Atour 4.0 with improved features. Huawei Chery Luxeed's specs and pricing announcement affects high-end sedans negatively....

Blue Lotus Research Institute

[Blue Lotus Daily]: LI/XPEV/NIO/TSLA/ATAT/HTHT/ZLAB/ACMR/CPNG/BABA/PDD/BEKE

​Coupang prioritizes growth over profitability, Tesla increases prices for Model 3 and Model Y, ZLAB's Q3 revenue falls short of estimates.

Blue Lotus Research Institute

[Blue Lotus Lodging Sector Update]: Dividend from Supply Shortage Can Continue into 2024

China hotels can continue to enjoy the premium pricing in the next 6-12 months, thanks to supply shortage in reopening. Atour (ATAT) looks...

Blue Lotus Research Institute

Atour Group releases Atour 4.0 with improved features. Huawei Chery Luxeed's specs and pricing announcement affects high-end sedans negatively....

Coupang prioritizes growth over profitability, Tesla increases prices for Model 3 and Model Y, ZLAB's Q3 revenue falls short of estimates.