Investment Rating - The investment rating for the company is "Buy" with a target price not specified [7][15]. Core Views - The company reported Q4 2024 revenue of 6 billion yuan, a year-on-year increase of 7.8%, exceeding the previous guidance of 1%-5% growth. However, adjusted net profit fell by 37.9% to 320 million yuan, primarily due to a 420 million yuan impairment loss from the DH business [1]. - For 2024, the company expects revenue of 23.9 billion yuan, a year-on-year increase of 9.2%, and adjusted net profit of 3.72 billion yuan, a growth of 5.8% [1]. - The company anticipates a positive outlook for franchise growth in 2025, with expected revenue growth of 2%-6% and a focus on franchise and management income growth of 17%-21% [4]. Summary by Sections Financial Performance - Q4 2024 revenue was 6 billion yuan, with a year-on-year growth of 7.8%. Adjusted net profit was 320 million yuan, down 37.9% due to impairment losses [1]. - For 2024, revenue is projected at 23.9 billion yuan, a 9.2% increase, with adjusted net profit expected to reach 3.72 billion yuan, up 5.8% [1]. Operational Metrics - The RevPAR for Huazhu China in Q4 2024 was 222 yuan, down 3.1% year-on-year, while the DH segment saw a RevPAR of 81 euros, up 11.0% [2]. - The company plans to open 2,442 new stores in 2024, exceeding the target of 2,400, bringing the total to 11,147 hotels by year-end [3]. Future Guidance - For Q1 2025, the company expects revenue growth of 0%-4%, with franchise income projected to grow by 18%-22% [4]. - The company plans to open approximately 2,300 new stores in 2025, with a net increase of about 1,700 stores after closures [4]. Shareholder Returns - The company plans to return 770 million USD to shareholders in 2024, including 500 million USD in cash dividends and 270 million USD in share buybacks [5]. - Adjusted net profit forecasts for 2025-2027 are 4.49 billion yuan, 5.13 billion yuan, and 5.94 billion yuan, respectively, with corresponding PE ratios of 17, 15, and 13 [5].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company achieved a total revenue of 23.89 billion RMB in 2024, representing a year-on-year growth of 9.2%. The adjusted EBITDA was 7.45 billion RMB, up 13.9% year-on-year, indicating that despite a decline in RevPAR, rapid store openings offset significant performance pressure [4][5] - The company plans to maintain a rapid store opening pace, with a target of opening 2,300 new stores in 2025 while closing 600, resulting in a net increase of 1,700 stores. The focus will be on franchise operations and optimizing the existing self-operated store structure [5][6] Financial Performance Summary - For the fiscal year 2024, the company reported: - Revenue: 23,891 million RMB - Year-on-year growth: 9.2% - Adjusted EBITDA: 6,150 million RMB - Year-on-year growth: -10.1% - Net profit attributable to shareholders: 3,048 million RMB - Year-on-year growth: -25.4% [6][8] - Forecasted financials for 2025E, 2026E, and 2027E: - Revenue: 25,090 million RMB (5.0% growth), 26,837 million RMB (7.0% growth), 28,888 million RMB (7.6% growth) - Adjusted EBITDA: 7,227 million RMB (17.5% growth), 7,968 million RMB (10.3% growth), 8,848 million RMB (11.0% growth) - Net profit: 4,263 million RMB (39.9% growth), 4,852 million RMB (13.8% growth), 5,505 million RMB (13.5% growth) [6][8] Revenue Breakdown - In Q4 2024, the company achieved revenue of 60.2 billion RMB, a year-on-year increase of 7.8%, exceeding performance guidance. Revenue from domestic self-operated, domestic franchised, overseas self-operated, and overseas franchised segments were 21.8 billion RMB, 24.7 billion RMB, 12.0 billion RMB, and 0.3 billion RMB, respectively [5][6] RevPAR and Operational Metrics - For Q4 2024, the domestic RevPAR, ADR, and OCC were 222 RMB, 277 RMB, and 80.0%, showing year-on-year declines of 3.1%, 2.5%, and 0.5 percentage points. Conversely, overseas RevPAR, ADR, and OCC were 81 Euros, 115 Euros, and 70.5%, reflecting year-on-year increases of 10.7%, 0.2%, and 6.7 percentage points [5][6] Future Outlook - The company is expected to stabilize its RevPAR in 2025, driven by a normalized macroeconomic environment and the growth of the mid-to-high-end market. The long-term profit margin is anticipated to improve due to the ongoing light-asset strategy [5][6]

Investment Rating - The report assigns a "BUY" rating to the company, indicating a potential upside of 15% to 35% from the current price [6]. Core Insights - The company achieved a revenue of RMB 23.89 billion in 2024, representing a year-on-year increase of 9.2%, but net profit decreased by 25.4% to RMB 3.05 billion [6]. - The adjusted EBITDA for the year was RMB 6.8 billion, up 7.9% year-on-year, with the Huazhu segment contributing RMB 7 billion, a 12.9% increase [6]. - The company plans to maintain a rapid pace of hotel openings, targeting 2,300 new hotels in 2025 while closing 600 [6]. - The report forecasts net profits of RMB 3.47 billion, RMB 4.08 billion, and RMB 4.82 billion for 2025, 2026, and 2027, respectively, with corresponding EPS of RMB 1.11, RMB 1.30, and RMB 1.54 [8]. Summary by Sections Company Overview - The company operates in the social services industry, with a current H-share price of HKD 28.50 and a market capitalization of RMB 77.71 billion [2]. Financial Performance - The company reported total revenue of RMB 23.89 billion for 2024, with a breakdown of RMB 13.8 billion from leasing and owned hotels (up 0.3%) and RMB 9.5 billion from management and franchising (up 23.4%) [6]. - The net profit for the Huazhu segment was approximately RMB 3.6 billion, down 56.7% year-on-year, primarily due to foreign exchange losses and increased withholding tax [6]. Future Outlook - The company expects to maintain a high occupancy rate of 81.2% in 2024, with growth driven by its asset-light strategy and rapid expansion [6]. - A shareholder return plan totaling USD 2 billion over three years is set to enhance shareholder value, with an expected total of USD 770 million in dividends and share buybacks for the year [6].

Investment Rating - The report maintains a "Buy" rating for Huazhu Group-S (01179.HK) [1] Core Views - The company is expected to maintain a strong opening pace in 2025, with a focus on asset-light structural adjustments [1] - The Q4 revenue exceeded guidance, with a year-on-year increase of 7.8%, reaching 6.023 billion yuan [8] - The company plans to distribute a cash dividend of 500 million USD for 2024, with a payout ratio exceeding 100% [8] Financial Performance Summary - Total revenue for 2023 is projected at 21.882 billion yuan, with a year-on-year growth of 57.86% [1] - The net profit attributable to shareholders for 2023 is expected to be 4.085 billion yuan, reflecting a significant year-on-year increase of 324.33% [1] - The earnings per share (EPS) for 2023 is estimated at 1.27 yuan, with a price-to-earnings (P/E) ratio of 20.69 [1] Business Expansion and Guidance - As of Q4 2024, the number of stores in mainland China reached 11,025, a year-on-year increase of 19% [8] - The company plans to open 2,300 new stores in 2025 while closing 600, resulting in a net increase of 1,700 stores [8] - The revenue growth guidance for Q1 2024 is set at 0-4%, with expectations for gradual improvement in RevPAR [8] Profitability Forecast - The forecast for net profit attributable to shareholders for 2025 is 3.806 billion yuan, with a year-on-year growth of 23.20% [1] - The projected P/E ratios for 2025, 2026, and 2027 are 22, 19, and 17 respectively [1] - The report anticipates a continuous improvement in the market landscape, supported by the company's brand, traffic, and technology [8]

Hotel Operations - As of December 31, 2024, the company operated 11,147 hotels, totaling 1,088,218 hotel rooms[6] - The company plans to open approximately 2,300 hotels and close about 600 hotels in 2025[7] - As of December 31, 2024, the company operates a total of 11,147 hotels and 1,088,218 rooms globally, including 122 hotels from Legacy-DH[8] - The company opened over 2,400 new hotels in 2024, surpassing the initial target of 1,800 hotels[12] - The total number of hotels remained unchanged at 7,163, with a total of 3,013 hotels in the pipeline as of December 31, 2024[77] Financial Performance - Hotel operating revenue for Q4 2024 increased by 16.5% year-over-year to RMB 23.7 billion, while the full year saw a 15.5% increase[6] - Q4 2024 revenue grew by 7.8% year-over-year to RMB 6 billion (approximately $825 million), exceeding previous guidance of 1% to 5% growth[6] - For the full year 2024, total revenue reached RMB 23,891 million, a 9.2% increase compared to 2023[14] - The revenue from Legacy-Huazhu for Q4 2024 was RMB 4,800 million, a year-over-year increase of 9.2%[13] - The revenue from management franchise and leasing hotels in Q4 2024 was RMB 25,000 million, a year-over-year increase of 24%[15] Profitability - Net profit attributable to the company for Q4 2024 was RMB 49 million (approximately $7 million), a decline from RMB 743 million in Q4 2023[6] - For the full year 2024, the net profit attributable to Huazhu Group Limited was RMB 3 billion (approximately $418 million), down from RMB 4.1 billion in 2023[27] - In Q4 2024, operating profit was RMB 902 million (approximately USD 123 million), compared to RMB 757 million in Q4 2023 and RMB 1.7 billion in Q3 2024[23] - For the full year 2024, operating profit reached RMB 5.2 billion (approximately USD 713 million), an increase from RMB 4.7 billion in 2023[23] Costs and Expenses - In Q4 2024, hotel operating costs amounted to RMB 4.2 billion (approximately USD 574 million), an increase from RMB 4.0 billion in Q4 2023 and RMB 3.8 billion in Q3 2024, primarily due to personnel cost increases from hotel network expansion[17] - For the full year 2024, hotel operating costs totaled RMB 15.3 billion (approximately USD 2.1 billion), compared to RMB 14.3 billion in 2023[18] - In Q4 2024, general and administrative expenses were RMB 725 million (approximately USD 99 million), an increase from RMB 644 million in Q4 2023 and RMB 672 million in Q3 2024[20] - For the full year 2024, general and administrative expenses totaled RMB 2.5 billion (approximately USD 344 million), compared to RMB 2.1 billion in 2023[21] Future Outlook - For Q1 2025, the company expects revenue growth of 0% to 4%, or 3% to 7% excluding DH[7] - For the full year 2025, the company anticipates revenue growth of 2% to 6%, or 5% to 9% excluding DH[7] - For Q1 2025, Huazhu expects revenue growth of 0% to 4%, or 3% to 7% excluding the DH segment, and management franchise revenue growth of 18% to 22%[33] - For the full year 2025, Huazhu anticipates revenue growth of 2% to 6%, or 5% to 9% excluding the DH segment, with management franchise revenue growth of 17% to 21%[33] Shareholder Returns - The company declared a cash dividend of approximately $300 million for the second half of 2024, equating to $0.097 per ordinary share[4] - Huazhu announced a shareholder return plan totaling up to USD 2 billion over three years, with approximately USD 767 million allocated for cash dividends and share repurchases in 2024[32] Non-GAAP Measures - The company utilizes non-GAAP financial measures such as adjusted net profit and adjusted EBITDA to provide meaningful supplemental information regarding its performance[37] - EBITDA is considered a useful financial indicator for assessing operational and financial performance before the impact of financing and taxes[39] - The company believes that adjusted EBITDA better reflects the financial performance capability of its hotels by excluding certain expenses[39] - The company's non-GAAP financial measures may not be comparable to similar measures used by other companies due to differences in calculation methods[41] Market Presence and Strategy - The company plans to continue expanding its management franchise and leasing models to enhance revenue streams and market presence[44] - The company plans to continue expanding its market presence and investing in new technologies to enhance operational efficiency[58] - The company is focusing on enhancing its brand and customer retention strategies to drive future growth in the hospitality sector[45] Debt and Cash Flow - The total debt and net cash balance as of December 31, 2024, were RMB 5.4 billion (approximately USD 743 million) and RMB 2.1 billion (approximately USD 288 million), respectively[30] - The operating cash inflow for Q4 2024 was RMB 2.7 billion (approximately USD 371 million), while the investment cash outflow was RMB 3.1 billion (approximately USD 424 million)[30] Operational Metrics - In Q4 2024, the average daily rate (ADR) for Legacy-Huazhu hotels was RMB 277, down from RMB 284 in Q4 2023 and RMB 301 in the previous quarter[10] - The occupancy rate for all operating Legacy-Huazhu hotels in Q4 2024 was 80.0%, compared to 80.5% in Q4 2023 and 84.9% in the previous quarter[10] - The average daily room rate for leased and owned hotels in Q4 2024 is projected to be RMB 353, a slight decrease of 0.7% compared to Q4 2023[68] - The occupancy rate for leased and owned hotels remained stable at 83.7% in Q4 2024, unchanged from the previous year[68]

Investment Rating - Maintain "Buy" rating for the company [2][4] Core Views - The company maintains a positive store expansion pace, focusing on mid-to-high-end brands, increasing penetration in lower-tier cities, and enhancing business travel cooperation and member loyalty [4] - Domestic RevPAR is under pressure due to a high base effect from the previous year, with OCC showing resilience but ADR declining significantly [4] - The company expects 2024E/2025E/2026E revenues of 23.7/25.8/28.0 billion RMB, with YoY growth of 8.2%/9.1%/8.3%, and net profits of 3.7/4.4/4.8 billion RMB, with YoY changes of -9.3%/+17.4%/+11.2% [4] - The current stock price corresponds to 2024E/2025E/2026E P/E ratios of 19/16/15x [4] Financial Performance - 2024Q3 revenue reached 6.44 billion RMB, up 2.4% YoY, with domestic self-operated, domestic franchised, overseas self-operated, and overseas franchised revenues at 2.461, 2.568, 1.229, and 0.034 billion RMB, respectively [4] - Adjusted EBITDA for 2024Q3 was 2.11 billion RMB, down 9.5% YoY, with domestic and overseas segments contributing 2.09 and 0.02 billion RMB, respectively [4] - Adjusted EBITDA margin was 32.8%, down 4.3 ppts YoY and 0.4 ppts QoQ [4] - Adjusted net profit was 1.37 billion RMB, down 10.8% YoY [4] Operational Metrics - Domestic RevPAR, ADR, and OCC for 2024Q3 were 256 RMB, 301 RMB, and 84.9%, down 8.1%, 7.0%, and 1.0 ppts YoY, respectively [4] - Overseas RevPAR, ADR, and OCC for 2024Q3 were 82 EUR, 117 EUR, and 69.8%, up 3.7%, 2.5%, and 0.8 ppts YoY, respectively [4] - The company opened 790 new domestic stores in 2024Q3, with the full-year store opening guidance raised from 2,200 to 2,400 stores [4] - Total store count reached 10,845 by the end of 2024Q3, with over 800 new contracts signed during the quarter [4] Financial Projections - 2024E/2025E/2026E revenues are projected at 23.7/25.8/28.0 billion RMB, with YoY growth of 8.2%/9.1%/8.3% [5] - 2024E/2025E/2026E net profits are projected at 3.7/4.4/4.8 billion RMB, with YoY changes of -9.3%/+17.4%/+11.2% [5] - 2024E/2025E/2026E EBITDA is projected at 6.78/7.51/8.17 billion RMB, with YoY changes of -0.8%/+10.8%/+8.7% [5] - 2024E/2025E/2026E EPS is projected at 1.16/1.37/1.52 RMB [5]

Investment Rating - Buy (Maintained) [7] Core Views - The company's Q3 2024 performance was largely in line with expectations, with revenue reaching RMB 6.442 billion, a YoY increase of 2.45%, within the guidance range of 2%-5% [2] - Domestic RevPAR declined due to a high base effect, with ADR having a greater impact, while overseas operational indicators remained stable [3] - The company continues to expand its hotel network and upgrade its products, raising its full-year store opening guidance to 2,400 stores (previously 2,200 stores) [4] - Operating costs and expenses increased YoY due to business expansion, but the company's performance remained largely in line with expectations [5] - The company emphasized its dividend and share repurchase plans to enhance shareholder returns, including a USD 1 billion share repurchase plan over five years [6] Financial Performance - Q3 2024 revenue: RMB 6.442 billion, up 2.45% YoY, with domestic revenue at RMB 5.162 billion (up 0.96% YoY) and overseas revenue at RMB 1.280 billion (up 8.94% YoY) [2] - Q3 2024 net profit attributable to shareholders: RMB 1.273 billion, down 4.79% YoY [2] - Domestic RevPAR: RMB 256, down 8.1% YoY, with ADR at RMB 301, down 7.0% YoY [3] - Overseas RevPAR: EUR 82, up 3.7% YoY, with ADR at EUR 117, up 2.5% YoY [3] Expansion and Operations - Q3 2024 domestic store openings: 774 new stores (3 directly operated, 771 franchised), with a net increase of 557 stores [4] - Pipeline: 2,899 stores in the domestic market, with 1,082 economy and 1,817 mid-to-high-end hotels [4] - The company is accelerating its store expansion, with a focus on upgrading its product offerings and optimizing its brand portfolio [4] Shareholder Returns - The company announced a 3-year shareholder return plan, including a maximum distribution of USD 2 billion and a USD 1 billion share repurchase plan over five years [6] - In the first three quarters of 2024, the company repurchased approximately USD 270 million worth of shares and returned approximately USD 470 million to shareholders through dividends and share repurchases [6] Future Outlook - The company expects Q4 2024 revenue growth of 1%-5% (excluding DH growth) [12] - Forecasted revenue for 2024-2026: RMB 23.774 billion, RMB 25.455 billion, and RMB 27.561 billion, with YoY growth rates of 8.6%, 7.1%, and 8.3%, respectively [12] - Forecasted net profit attributable to shareholders for 2024-2026: RMB 3.839 billion, RMB 4.524 billion, and RMB 5.134 billion, with YoY growth rates of -5.9%, 17.8%, and 13.5%, respectively [12] Financial Ratios - 2024E P/E: 20.1x, 2025E P/E: 17.1x, 2026E P/E: 15.0x [12] - 2024E P/B: 4.6x, 2025E P/B: 3.6x, 2026E P/B: 2.9x [13]

Investment Rating - The report maintains a "Buy" rating for Huazhu Group-S (01179 HK) and Huazhu (HTHT O) with a target price of HKD 36 01 per share for the Hong Kong-listed stock and USD 46 28 per ADS for the US-listed stock [5] Core Views - Huazhu Group reported Q3 2024 revenue of RMB 6 44 billion (+2 4% YoY) at the lower end of the guidance range Net profit attributable to shareholders was RMB 1 27 billion (-4 8% YoY) while adjusted net profit was RMB 1 37 billion (-10 8% YoY) [1] - For the first three quarters of 2024 the company achieved revenue of RMB 17 87 billion (+9 6% YoY) and net profit attributable to shareholders of RMB 3 00 billion (-10 3% YoY) Adjusted net profit for the period was RMB 3 40 billion (+13 4% YoY) [1] - Domestic RevPAR ADR and occupancy rates in Q3 2024 were RMB 256 (-8 1% YoY) RMB 301 (-7 0% YoY) and 84 9% (-1 0 pct YoY) respectively International RevPAR ADR and occupancy rates were EUR 82 (+3 7% YoY) EUR 117 (+2 5% YoY) and 69 8% (+0 8 pct YoY) respectively [1] - The company accelerated its domestic hotel openings with 774 new hotels in Q3 2024 (a record high) and a net increase of 557 hotels bringing the total domestic hotel count to 10 707 By the end of Q3 2024 the company had opened 1 910 hotels domestically achieving 87% of its annual target of 2 200+ hotels [1] Financial Performance - Operating costs increased to 59 0% (+1 5 pct YoY) in Q3 2024 mainly due to rising labor costs (21 3% +2 4 pct YoY) Sales expenses were 4 7% (+0 1 pct YoY) and management expenses were 10 4% (+1 9 pct YoY) Net profit margin attributable to shareholders was 19 8% (-1 5 pct YoY) while adjusted net profit margin was 21 3% (-3 2 pct YoY) [2] - Revenue growth guidance for Q4 2024 is 1%-5% (regardless of DH inclusion) The report forecasts net profit attributable to shareholders of RMB 3 7 billion RMB 4 5 billion and RMB 5 0 billion for 2024 2025 and 2026 respectively [2] Growth and Profitability - Revenue growth is projected at 7 9% 6 7% and 5 8% for 2024 2025 and 2026 respectively [3] - Net profit attributable to shareholders is expected to grow by 21 6% and 12 2% in 2025 and 2026 respectively [3] - ROE is forecasted at 23 1% 21 8% and 19 5% for 2024 2025 and 2026 respectively [3] Valuation - The report values Huazhu Group at 24x PE for 2025 corresponding to a fair value of HKD 36 01 per share for the Hong Kong-listed stock and USD 46 28 per ADS for the US-listed stock [2]

Investment Rating - Maintains a "Buy" rating for Huazhu Group (1179 HK/HTHT US) with an upward revision of the target price to HKD 32.9 for HK shares and USD 41.1 for US shares [2][3] Core Views - Huazhu Group's 3Q24 revenue reached RMB 6.4 billion, a YoY increase of 2.4%, with domestic revenue growing 1% and overseas revenue growing 8.9% [2] - Net profit attributable to shareholders in 3Q24 was RMB 1.27 billion, a YoY decline of 4.8%, impacted by one-off factors [2] - The company opened 790 new stores in 3Q24, setting a new quarterly record, with 774 net new stores in China and 16 overseas [2] - Domestic RevPAR in 3Q24 was RMB 256, a YoY decline of 8.1%, primarily due to high base effects from the previous year and adverse weather conditions [2] - Overseas business restructuring is expected to drive long-term high-quality growth, with one-time restructuring costs of RMB 81 million in 3Q24 [2] Financial Performance and Forecasts - Revenue for 2024E is projected at RMB 23.6 billion, with a YoY growth of 7.8%, while net profit attributable to shareholders is expected to be RMB 3.525 billion, a YoY decline of 13.7% [4] - Gross margin for 2024E is forecasted at 35.7%, with operating margin at 19.7% [4] - The company's PE ratio for 2024E is estimated at 22.1x for US shares and 22.0x for HK shares [4] Operational Metrics - Domestic ADR in 3Q24 was RMB 301, a YoY decline of 7%, while OCC remained relatively stable at 84.9%, down 1ppt YoY [15] - Overseas ADR in 3Q24 was USD 117, a YoY increase of 2.5%, with OCC at 69.8%, up 0.8ppt YoY [15] Market Valuation and Target Price - The target price for Huazhu Group's HK shares is set at HKD 32.9, representing a potential upside of 26.1% from the current price of HKD 26.1 [3] - The target price for Huazhu Group's US shares is set at USD 41.1, representing a potential upside of 24.2% from the current price of USD 33.1 [3] Industry Context - The hotel industry's valuation multiple has increased, leading to an upward revision of Huazhu Group's target price based on a 14x 2025E EV/EBITDA, a 20% discount compared to the average of international hotel groups [2]

Investment Rating - Maintains an "Outperform" rating for Huazhu Group-S (1179 HK) [1][16] Core Views - Q3 2024 revenue increased slightly by 2 4% to RMB 6 44 billion, within the lower range of the guidance (2-5% growth) [1][7] - Adjusted net profit declined by 10 8% YoY to RMB 1 37 billion, and adjusted EBITDA decreased by 9 5% to RMB 2 11 billion, slightly below Bloomberg consensus estimates [1][7] - Domestic hotel RevPAR declined by 7 9% YoY to RMB 256, impacted by high base effects and weather disruptions [1][8] - Overseas hotel revenue grew by 8 9% YoY to RMB 1 28 billion, with a net loss of RMB 89 million due to restructuring costs [1][11] Domestic Hotel Operations - Domestic hotel RevPAR for mature stores decreased by 10 3% YoY to RMB 258, with ADR down 8 4% and occupancy rate down 1 8 percentage points [1][8] - 774 new hotels opened in Q3 2024, with a net increase of 557 hotels, bringing the total domestic hotel count to 10,707 by the end of Q3 2024 [1][8] - Domestic revenue grew by 1 0% YoY to RMB 5 162 billion, with franchised revenue up 14 7% and direct-operated revenue down 10 4% [1][8] Overseas Hotel Operations - Overseas DH RevPAR increased by 3 7% YoY, driven by a 2 5% increase in ADR and a 0 8 percentage point increase in occupancy rate [1][11] - The company exited 14 self-operated hotels in Denmark and fully took over the Zleep brand, with restructuring costs of RMB 81 million [1][11] Future Outlook - Q4 2024 revenue is expected to grow by 1-5%, with RevPAR expected to decline in the mid-single digits but with a narrowing YoY decline [1][12] - The company plans to accelerate its expansion in lower-tier cities, upgrade its mid-to-high-end hotel brands, and strengthen direct sales capabilities [1][12] - Overseas operations are expected to improve in 2025 due to ongoing asset-light optimization and operational enhancements [1][12] Financial Forecasts - Revenue for 2024E is projected at RMB 23 305 billion, with adjusted net profit of RMB 3 935 billion [4] - Adjusted EPS for 2024E is forecasted at RMB 1 23, with a PE ratio of 19 8x [4] - ROE is expected to be 25 2% in 2024E, with an EBIT margin of 16 9% [4]