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

[Atour (ATAT US, BUY, TP US$36) Review]: Retail Business Bigger and Longer than Market Thinks

[Atour (ATAT US, BUY, TP US$37) TP Change]: Strong 11.11 Sales Recalibrate E-Commerce Potential

[Atour (ATAT US, BUY, TP US$37) Review]: Small Differences Here & There but Overall Case Intact

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

Equity Bottom-Up

Atour Lifestyle Holdings / Equity Bottom-Up

<ul>
<li>Atour (ATAT) reported C4Q24 revenue 0.7%/5.8% higher than our estimate/consensus, which translate to 0.5%/4.7% higher in non-GAAP net income, thanks to hotel supply chain consolidation and pillow retail sales.</li>
<li>Management's guidance for a steeper-than-consensus decline in 2025's RevPAR are conservative in our view. We see a "low-before-high" RevPAR pattern in 2025, supported by tightened hotel supply and government stimuli.</li>
<li>We keep the TP at US$37/ADS and maintain as travel sector TOP BUY</li>
</ul>


Atour (ATAT) reported C4Q24 revenue 0.7%/5.8% higher than our estimate/consensus, which translate to 0.5%/4.7% higher in non-GAAP net income, thanks to hotel supply chain consolidation and pillow retail sales.
Management's guidance for a steeper-than-consensus decline in 2025's RevPAR are conservative in our view. We see a "low-before-high" RevPAR pattern in 2025, supported by tightened hotel supply and government stimuli.
We keep the TP at US$37/ADS and maintain as travel sector TOP BUY


[Atour Lifestyle (ATAT US, BUY, TP US$37) Review]: Higher-Quality Growth Extending into 2025