Hotel operator Chateau 夏都 (stock code: 2722) has recently experienced a significant decline in its stock price.
On the 13th, they announced their self-reported financial results for June and the year’s first half. The net profit after tax for June was 14.78 million yuan, with an earnings per share of 0.13 yuan. The accumulated net profit after tax for the year’s first half reached 48.26 million yuan, showing a year-on-year growth rate of 109.1%, with earnings per share of 0.43 yuan.
Chateau’s net profit after tax for the first quarter was 22.14 million yuan, showing a year-on-year growth rate of 73.6%, with earnings per share (EPS) of 0.2 yuan. With the peak season approaching, the performance in June was outstanding, with a monthly EPS of 0.13 yuan.
After the lifting of restrictions, there has been a huge surge in domestic travel demand, and the mesmerizing turquoise sea of Kenting has become a major attraction.
As a result, the Chateau Hotel Group’s performance has also seen a rebound. Firstly, they actively participated in Kenting National Park’s special events and collaborated with various community development associations in the Hengchun area to promote eco-tourism itineraries.
They have taken a proactive approach to use “tourism” as an “integrated platform,” leveraging cross-domain, integration, connection, and alliance strategies to strengthen the integration of different regions and industries. This has led to the development of deep value-added tourism experiences.
Furthermore, Chateau Beach resort subsidiary, Xia Du Fulong Hotel 富朗酒店, has been completely renovated and now welcomes guests with a brand new look. It reopened this year after extensive refurbishment, focusing on room renovations, the baking department, coffee bar counter, and the addition of a leisure and entertainment area (fitness room).
The number of rooms has increased from the original 54 to 93, and 61 new backpacker beds have been added, providing guests with a variety of room options at different price ranges.
However, the growth might be affected by recent labor shortages in Kenting, you can read more about this here.