China/Asia TMT

Shawn Yang

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

Equity Bottom-Up

Atour Lifestyle Holdings / Equity Bottom-Up

<ul>
<li>The strong travel demand in Jan. and Feb. had pushed up the industry-wide ADR nearing the 2019 level due the temporary hotel shortage, Atour especially benefited from the trend . </li>
<li>Except the positive industry trend, we think the releasing of requisitioned hotels and the expansion of Atour Light are the near-term catalyst for Atour. </li>
<li>We maintain the BUY rating and raise TP by US$1.5 to US$36.5</li>
</ul>


The strong travel demand in Jan. and Feb. had pushed up the industry-wide ADR nearing the 2019 level due the temporary hotel shortage, Atour especially benefited from the trend . 
Except the positive industry trend, we think the releasing of requisitioned hotels and the expansion of Atour Light are the near-term catalyst for Atour. 
We maintain the BUY rating and raise TP by US$1.5 to US$36.5


[Atour Lifestyle (ATAT US) Target Price Change]: Strong Recovery Bodes Well for 1Q23

Thematic (Sector/Industry)

<ul>
<li>(2821.SZ/6821.HK)/(1177.HK/SBHMY): F-Star cleared CFIUS investigation, suggesting US criteria on China investments (+) </li>
<li>ATAT: Corporate travel demand recover quickly in hotel sector (+)</li>
<li>BILI/1024.HK/Douyin: People's Daily criticizes vulgar internet slangs rampant in short videos. (-/-/-)</li>
</ul>


(2821.SZ/6821.HK)/(1177.HK/SBHMY): F-Star cleared CFIUS investigation, suggesting US criteria on China investments (+) 
ATAT: Corporate travel demand recover quickly in hotel sector (+)
BILI/1024.HK/Douyin: People's Daily criticizes vulgar internet slangs rampant in short videos. (-/-/-)


China TMT Update(Mar.9):ATAT /BILI/1024.HK/Douyin/(2821.SZ/6821.HK)/(1177.HK/SBHMY)

<ul>
<li>Although the operating metrics are expected to be weak in 4Q22 due to the lingering of Covid effects, we expect the resumption of travel to stimulate hotel demands in 2023. </li>
<li>We expect Atour to report its 4Q22 revenue at RMB580mn and OPM at 8.2%, both in-line with consensus. We expect a strong revenue growth at 60% YoY in 2023.</li>
<li>We rate the stock as BUY and maintain the TP at US$35.</li>
</ul>


Although the operating metrics are expected to be weak in 4Q22 due to the lingering of Covid effects, we expect the resumption of travel to stimulate hotel demands in 2023. 
We expect Atour to report its 4Q22 revenue at RMB580mn and OPM at 8.2%, both in-line with consensus. We expect a strong revenue growth at 60% YoY in 2023.
We rate the stock as BUY and maintain the TP at US$35.


Atour (ATAT.US) Preview: Expecting Weak 4Q22 and Strong 2023

<ul>
<li>We believe Atour’s near-term goal is to build a national hospitality group. We expect Atour’s network to expand to 2,500+ in 2025 from the current 900+.</li>
<li>The time window for chain hotel’s expansion is still open in China. Mobile-Internet-enabled business model changes will usher in new challengers like Atour to the industry’s Big Three.</li>
<li>We initiate Atour (ATAT US) with a BUY rating and target price of US$35 per ADS to ride on its first phase of network expansion.</li>
</ul>


We believe Atour’s near-term goal is to build a national hospitality group. We expect Atour’s network to expand to 2,500+ in 2025 from the current 900+.
The time window for chain hotel’s expansion is still open in China. Mobile-Internet-enabled business model changes will usher in new challengers like Atour to the industry’s Big Three.
We initiate Atour (ATAT US) with a BUY rating and target price of US$35 per ADS to ride on its first phase of network expansion.


Atour(ATAT.US) Initiation: Buy for First-Stage Single-Brand Network Expansion

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

Atour Lifestyle Holdings / Equity Capital Markets

<ul>
<li>Atour Lifestyle Holdings (ATAT US) is a leading upper midscale hotel chain group in China is getting ready for an IPO in the US.</li>
<li>We believe that a valuation range of RMB12.8 billion ($1.8 billion) to RMB16.9 billion ($2.3 billion) is appropriate for Atour Lifestyle Holdings. </li>
<li>Unless the IPO is priced sufficiently lower than the intrinsic value of the company, many institutional investors will likely pass on the IPO given the Bearish market sentiment.</li>
</ul>


Atour Lifestyle Holdings (ATAT US) is a leading upper midscale hotel chain group in China is getting ready for an IPO in the US.
We believe that a valuation range of RMB12.8 billion ($1.8 billion) to RMB16.9 billion ($2.3 billion) is appropriate for Atour Lifestyle Holdings. 
Unless the IPO is priced sufficiently lower than the intrinsic value of the company, many institutional investors will likely pass on the IPO given the Bearish market sentiment.


China

Xinhu Zhongbao Co., Ltd. provides development and sale of residential properties.  The Company operates in import and export trading, hotel management, and construction materials manufacturing.

Chengdu Hi-tech Development Co., Ltd. develops and sells real estate properties.  The Company also designs and produces kitchen cabinets, produces pharmaceuticals, and develops taxation software.

Chengdu Hi Tech Development Co Ltd. (000628 CH)

Greentown China Holdings Ltd. develops real estate.  The Company builds residential villas, low-rise apartment buildings, and high-rise apartment buildings for middle and high-income people.

Shanghai Chinafortune Co Ltd manufactures and markets electrical products and instruments, including electric meters, printed circuit boards, and electric motors. The Company, through its subsidiaries, also operates in network engineering, taxi services, import/export trading, and property management.

Shanghai Lujiazui Finance & Trade Zone Development Co., Ltd. operates in land development, property management, and infrastructure facilities construction within the Lujiazui Finance and Trade Zone.  The Company also undertakes building and renovation projects.

Shanghai Lujiazui Finance & Trade Zone (600663 CH)

Gemdale Corporation develops residential buildings and operates in property rental and management. The Company also invests in commercial trading businesses.

China Overseas Property Holdings Limited operates as a property management firm. The Company manages residential communities, commercial properties and government properties in Hong Kong and Macau.

Country Garden Services Holdings Company Limited provides real estate development services. The Company develops residential apartments, multi-functional complex buildings, government and public facilities, industrial parks, highway service stations, and schools. Country Garden Services Holdings serves clients in China.

Poly Property Services Co., Ltd. provides property services. The Company offers property management, property projects pre-consultation, post-delivery evaluation and analysis, professional equipment and facilities maintenance, housekeeping, and other services. Poly Property Services provides services in China.

Hainan Haide Industry Co., Ltd. develops residential properties and operates a hotel.

Asset World Corp Public Company Limited focuses on real estate development and investment services. The Company offers property management. Asset World Corp serves customers in Thailand.

WHA Corp PCL is a built-to-suit distribution center and factory developer in Thailand.

Land and Houses Public Company Limited develops real estate projects including single-detached homes, townhouses, and condominiums. The Company builds single and attached homes, primarily on land that it develops and improves. Land and Houses also operates its own architectural, engineering, design and construction teams for customer's specific designs and orders.

Japan Prime Realty Investment Corporation is a real estate investment trust (REIT) which mainly invests in office buildings and commercial-use facilities nationwide.

Retail Opportunity Investments Corp. is a fully integrated and self-managed real estate investment trust ("REIT").  The Company specializes in the acquisition, ownership and management of necessity-based community, and neighborhood shopping centers in the western and eastern regions of the United States anchored by national and regional supermarkets and drugstores.

Retail Opportunity Investments Corp. (ROIC US)

Industrial & Infrastructure Fund Investment Corporation is a a real estate investment trust (REIT). The Company invests in real estate properties such as facilities for industry and infrastructure institution.

Industrial & Infrastructure Fund Investment (3249 JP)

Industrial & Infrastructure Fund Investment

Nippon Accommodations Fund Inc. is a real estate investment trust (REIT), which invests in income producing properties.  The Company invests in residential buildings.

SPH REIT is a Singapore-based REIT established principally to invest, directly or indirectly, in a portfolio of income-producing real estate which is used primarily for retail purposes in Asia-Pacific, as well as real estate-related assets.

Equity Commonwealth is a real estate investment trust, or REIT. The Company primarily owns office buildings located in Central Business District and suburban areas of major metropolitan markets in the United States, and has a large concentration of properties leased to the U.S. Government and medical related tenants. Equity CommonWealth also owns industrial lands in Hawaii.

Getty Realty Corporation owns and leases properties in the Northeastern and Middle Atlantic states. These properties, consisting of service stations, convenience stores and petroleum marketing terminals are leased to Getty Petroleum Marketing Inc. Getty Realty Holding is also a marketer of heating oil in Pennsylvania and Maryland.

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.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Atour Lifestyle Holdings (ATAT US)

[Atour Lifestyle (ATAT US) Target Price Change]: Strong Recovery Bodes Well for 1Q23

The strong travel demand in Jan. and Feb. had pushed up the industry-wide ADR nearing the 2019 level due the temporary hotel shortage, Atour...

Blue Lotus Research Institute

China TMT Update(Mar.9):ATAT /BILI/1024.HK/Douyin/(2821.SZ/6821.HK)/(1177.HK/SBHMY)

BILI/1024.HK/Douyin: People's Daily criticizes vulgar internet slangs (-/-/-); ATAT: Corporate travel demand recover(+); (2821.SZ/6821.HK)/(1177.HK...

Blue Lotus Research Institute

Atour (ATAT.US) Preview: Expecting Weak 4Q22 and Strong 2023

Although the operating metrics are expected to be weak in 4Q22 due to the lingering of Covid effects, we expect the resumption of travel to...

Blue Lotus Research Institute

Atour(ATAT.US) Initiation: Buy for First-Stage Single-Brand Network Expansion

We expect Atour’s network to expand to 2,500+ in 2025 from the current 900+. We initiate Atour (ATAT US) with a BUY rating and target price of...

Blue Lotus Research Institute

Atour Lifestyle Holdings IPO Analysis

Atour Lifestyle Holdings (ATAT US) is a leading upper midscale hotel chain group in China is getting ready for an IPO in the US. We provide an in...

Douglas Kim

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)