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GreenTree Hospitality CEO signs report, Q3 revenue drops 22% on weaker RevPAR

EditorEmilio Ghigini
Published 25/11/2024, 12:30
GHG
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Alex S. Xu, the Chairman and Chief Executive Officer of GreenTree Hospitality Group Ltd., signed the report, which was filed on Monday, November 25, 2024. The company, with its principal executive offices located at 1228 Zhongshan North Road, Putuo District, Shanghai, People's Republic of China, operates under the SEC file number 001-38425.

Investors and stakeholders interested in the detailed financial metrics of GreenTree Hospitality Group Ltd.'s performance in the third quarter of 2024 should refer to the full document filed with the SEC. The report is a valuable source of information for those looking to understand the company's recent financial progress and position.

This article is based on the press release statement and the SEC filing made by GreenTree Hospitality Group Ltd. on November 25, 2024. The company is listed in the real estate and construction sector and is publicly traded, indicating its financial transparency and compliance with international reporting standards.

In other recent news, GreenTree Hospitality Group Ltd. reported a downturn in its third-quarter financial performance for 2024. The company's total revenues experienced a 22.5% decrease, amounting to RMB357 million, largely due to lower revenue per available room (RevPAR) and changes in the business model. Net income saw a significant fall of 44.4%, resulting in RMB65.2 million, while adjusted EBITDA was down 32.1% at RMB122.5 million.

The company's financials were also impacted by foreign exchange losses, which amounted to roughly RMB33 million. Despite these challenges, the company's management anticipates a normalized competitive environment in 2025, with potential stabilization in RevPAR and continued strategic focus on Tier 2 and Tier 3 cities.

Furthermore, the company's CEO, Alex Xu, expressed confidence in the improvement of operating income and EBITDA, emphasizing the resilience of the business model. These are among the recent developments surrounding GreenTree Hospitality Group Ltd.

InvestingPro Insights

GreenTree Hospitality Group Ltd. (GHG) presents an intriguing investment case based on recent InvestingPro data and tips. The company's P/E ratio of 9.92 suggests it's trading at a relatively low earnings multiple, which could indicate potential undervaluation. This is further supported by an InvestingPro Tip highlighting that the company's valuation implies a strong free cash flow yield.

Despite a challenging market environment, GHG has maintained profitability over the last twelve months, with a revenue of $201.08 million and an impressive operating income margin of 23.26%. The company's ability to generate profits in the current economic climate is noteworthy, especially considering the InvestingPro Tip that analysts predict the company will remain profitable this year.

For income-focused investors, GHG offers a dividend yield of 3.21%, which could be attractive in the current low-yield environment. However, it's important to note that the stock's price has underperformed over the past year, with a one-year total return of -31.96%.

These insights provide a snapshot of GHG's financial health and market performance, complementing the information in the SEC filing. For a more comprehensive analysis, InvestingPro offers additional tips and metrics that could be valuable for investors considering GHG stock.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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