Investment Rating - The report maintains an "Accumulate" rating for Huazhu Group-S (1179.HK) with a market price of HKD 30.7 [1]. Core Views - Huazhu's Q1 performance slightly exceeded expectations, benefiting from improvements in product strength due to direct store renovations and enhanced revenue management capabilities. The company continues to lead its competitors in management and product selection, resulting in a sustained increase in market share. The current valuation does not fully reflect the company's intrinsic value [5]. - The profit forecast for Huazhu has been raised, maintaining the "Accumulate" rating. In Q1 2024, despite the industry facing growth pressures from high base effects, Huazhu's core operating metrics showed steady growth. The company is expected to achieve or exceed its performance targets, leading to an upward revision of net profit forecasts for 2024-2025 [5]. Financial Performance Summary - For Q1 2024, Huazhu reported revenue of CNY 5.28 billion, a year-on-year increase of 17.8%. The net profit attributable to shareholders was CNY 660 million, a decrease of 33.4% compared to Q1 2023 [5]. - The domestic hotel segment (Legacy-Huazhu) generated revenue of CNY 4.23 billion, up 17.6% year-on-year, with a net profit of approximately CNY 830 million, down 30.6% [5]. - The overseas hotel segment (Legacy-DH) reported revenue of CNY 1.03 billion, a year-on-year increase of 16.6%, with a net loss of CNY 170 million [5]. Growth and Expansion - The company opened 569 new stores and closed 148 in Q1 2024, resulting in a net increase of 421 stores. The number of signed contracts reached 647, with a pipeline of 3,138 hotels awaiting opening [6]. - Huazhu's RevPAR (Revenue per Available Room) increased by 3.1% year-on-year in Q1 2024, with direct stores showing an 8.8% increase [5][6].

Investment Rating - The investment rating for the company is "Buy" [2][10] - The current market price is 30.7 HKD [2] Core Views - The company benefits from the enhancement of product capabilities due to the renovation of direct-operated stores and improved revenue management capabilities, leading to slightly better-than-expected performance in Q1 [6] - The company is expected to maintain a leading position in management and product iteration, which will continue to enhance its market share [6] - The profit forecast for 2024-2025 has been raised, with expected net profits of 42.3 billion and 50.5 billion respectively [6] Financial Performance Summary - Revenue for 2022 was 13,862 million, with a projected increase to 21,882 million in 2023, and further growth to 24,282 million in 2024 [3] - The net profit for 2022 was -1,821 million, expected to turn positive with 4,085 million in 2023 and 4,234 million in 2024 [3] - The company’s earnings per share (EPS) is projected to improve from -0.58 in 2023 to 1.31 in 2024 [3] - The return on equity (ROE) is expected to rise from -18.5% in 2022 to 39.2% in 2023 [3] Operational Highlights - In Q1 2024, the company opened 569 new stores and closed 148, resulting in a net increase of 421 stores [7] - The domestic hotel segment reported revenue of 42.3 billion, a year-on-year increase of 17.6% [6] - The overall RevPAR (Revenue per Available Room) increased by 3.1% in Q1 2024, with direct-operated stores showing an 8.8% increase [6]

Investment Rating - Buy (Maintained) [1] Core Views - Q1 revenue exceeded guidance: Revenue for Q1 2024 reached 5.3 billion yuan, up 18% YoY, surpassing the guidance of 12-16% growth [3] - Net store openings accelerated: In Q1, the company opened 569 new stores, with a net increase of 421 stores, exceeding expectations [3] - RevPAR under pressure due to high base: Q1 RevPAR was 216 yuan, up 3% YoY, with a room rate of 280 yuan and an occupancy rate of 77.2% [3] - Q2 revenue growth guidance: The company expects Q2 revenue growth to be between 7-11% [3] Financial Performance - Revenue: 2024E revenue is projected at 23.97 billion yuan, with a YoY growth of 9.54% [2] - Net profit: 2024E net profit is forecasted at 3.79 billion yuan, a decrease of 7.28% YoY [2] - EPS: 2024E EPS is expected to be 1.18 yuan per share [2] - P/E ratio: The current P/E ratio is 23.68x for 2024E [2] Store and Room Metrics - Total stores: As of Q1 2024, the company had 9,684 stores, with 47% being mid-to-high-end brands and 94% being franchised [3] - Room count: The total room count reached 929,000, with franchised rooms accounting for 843,000, up 19.5% YoY [3] - Store pipeline: The company has a pipeline of 3,138 stores, with plans to open 1,800 stores and achieve a net increase of 1,150 stores in 2024 [3] Market Data - Closing price: The stock closed at HKD 30.65 [5] - Market cap: The company's market cap is HKD 98.4 billion [5] - P/B ratio: The P/B ratio is 8.02x [5] Financial Ratios - ROE: 2024E ROE is projected at 23.79% [8] - Gross margin: 2024E gross margin is expected to be 35.44% [8] - Net profit margin: 2024E net profit margin is forecasted at 15.80% [8] Historical Performance - 2023 revenue: 21.88 billion yuan, up 57.86% YoY [2] - 2023 net profit: 4.09 billion yuan, up 324.33% YoY [2] - 2023 EPS: 1.27 yuan per share [2]

Investment Rating - The report maintains a "Buy" rating for the company [6][3][24] Core Insights - The company's revenue growth exceeded previous guidance, with Q1 2024 revenue reaching 5.278 billion yuan, a year-on-year increase of 17.8%, surpassing the prior guidance of 12-16% [2][6] - The domestic hotel RevPAR for Q1 2024 was 216 yuan, showing a year-on-year increase of 2.9% and a 21.3% increase compared to Q1 2019 [1][6] - The company continues to expand its hotel network, with 569 new openings and 148 closures in Q1 2024, resulting in a net increase of 421 hotels [2][6] Financial Performance - Q1 2024 operating income was 5.278 billion yuan, with domestic revenue at 4.245 billion yuan and international revenue at 1.033 billion yuan [2][6] - The operating profit for domestic hotels was 1.131 billion yuan, while international operations reported a loss of 128 million yuan [2][6] - The company expects Q2 2024 revenue growth guidance of 7% to 11% [2][6] Operational Metrics - The occupancy rate (OCC) for domestic hotels was 77.2%, with an average daily rate (ADR) of 280 yuan [1][6] - The company has a pipeline of 3,138 hotels in China, indicating continued expansion [2][6] - The report highlights the company's strategy of upgrading its product offerings and optimizing its brand portfolio, focusing on eliminating underperforming economy hotels [6][2] Future Projections - The projected net profit for the company for 2024, 2025, and 2026 is 4.32 billion yuan, 5.013 billion yuan, and 5.9 billion yuan, respectively, with corresponding P/E ratios of 22, 19, and 16 [6][10][18]

事件 5月 17 日公司公告1Q24 业绩，收入 52.8 亿元/+17.8%，归母净利 6.6 亿元/-33.4%，经调整净利7.7 亿元/+100.8%，经调整EBITDA 14.2 亿元/+37.8%。 点评 经营数据：Q1境内行业压力加大情况下表现较好，境外量价同比 均有提升。LH 1Q24 RevPAR 216 元/+3.1%、为 19 年同期121.3%， 恢复度环比Q4+1.5pct，行业淡季压力较大情况下表现持续领先； 拆分量价，OCC 77.2%/+1.6pct、ADR216 元/+3.1%，分别为19 年 同期 95.8%、126.7%；拆分结构，Q1 成熟店整体/经济型/中高端 RevPAR 为19年的123.9%/109.9%/111.4%。DH 1Q24 RevPAR 58 欧 元/+4.5%、恢复至19年同期98.3%；拆分看 OCC 55.8%/+2.3pct， ADR 104 欧元/+0.2%。 美元(元) 成交金额(百万元) Q1 收入增速好于指引，Q2预期增长7~11%。1Q24收入增速较4Q23 50.00 400 业绩公告指引上限16%高1.8pct，其中LH收入42. ...

Investment Rating - The report assigns a "Buy" rating for both US and Hong Kong stocks of the company [3]. Core Views - The company reported Q1 2024 revenue of 5.3 billion RMB, an 18% year-over-year increase, exceeding previous guidance of 12%-16% [5]. - The growth in revenue is primarily driven by new store openings, with franchise revenue increasing by 33% to 2.1 billion RMB and direct hotel revenue increasing by 8% to 3.1 billion RMB [5]. - The adjusted EBITDA for Q1 2024 rose by 38% to 1.4 billion RMB, reflecting a 169% increase compared to Q1 2019 [5]. - The company opened 569 new hotels in China during Q1 2024, significantly surpassing the previous year's total of 264 openings [5]. - The company expects Q2 2024 revenue to grow by 7%-11% [5]. Summary by Sections Financial Performance - Q1 2024 revenue reached 5.3 billion RMB, up 18% year-over-year and 162% compared to Q1 2019 [5]. - Q1 2024 net profit attributable to shareholders decreased by 33% to 660 million RMB, primarily due to the sale of assets in Q1 2023 [5]. - The company forecasts net profits of 4.2 billion RMB, 4.8 billion RMB, and 5.4 billion RMB for 2024, 2025, and 2026 respectively [5]. Operational Metrics - In Q1 2024, RevPAR in China increased by 3% to 216 RMB, while ADR rose by 1% to 280 RMB [5]. - The occupancy rate in China increased by 1.6 percentage points to 77.2% [5]. - The company has a total of 9,684 hotels in operation, with 3,138 hotels in the pipeline [5]. Market Outlook - The report maintains a reasonable value estimate of 35.06 HKD per share and 44.77 USD per ADS, supporting the "Buy" rating [5].

H World Group Limited (HTHT) delivered mixed first-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same.  The top line grew year over year while the bottom line dwindled.The company’s results reflect solid contributions from its Legacy-Huazhu and Legacy-DH segments, primarily driven by the growth in hotel openings and increased revenue per available room (RevPAR). Furthermore, the effective execution of its Service Excellence-Centric Sustainable Quality Grow ...

H World Group Limited (NASDAQ:HTHT) Q1 2024 Results Conference Call May 19, 2024 9:00 PM ET Company Participants Jason Chen - Investor Relations Director Ji Qi - Chairman Jin Hui - Chief Executive Officer Zou Jun - Executive VP & CFO Conference Call Participants Roland Leung - Bank of America Dan Xu - Morgan Stanley Simon Cheung - Goldman Sachs Lydia Ling - Citi Sijie Lin - CICC Operator Good day, and thank you for standing by. Welcome to H World Q1 2024 Earnings Conference Call. [Operator Instructions] I w ...

Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company's performance exceeded expectations, driven by store expansion and franchise income, with domestic performance showing high growth and overseas losses reducing. However, guidance for Q2 2024 is conservative due to a high base effect [3] - The report adjusts the forecast for the company's net profit for 2024, 2025, and 2026 to RMB 4.23 billion, RMB 5.54 billion, and RMB 6.69 billion, reflecting a decrease of 4.53%, 1.39%, and 1.67% respectively [3] - The target price is set at HKD 42.50, based on a 30x PE ratio for 2024 [3] Financial Summary - For Q1 2024, the company reported revenue of RMB 5.278 billion, a year-on-year increase of 17.81%, and an adjusted net profit of RMB 771 million, up 100.78%. Adjusted EBITDA was RMB 1.421 billion, reflecting a 17% increase [3] - The overall RevPAR for Q1 2024 increased by 3.1%, with ADR up by 1.0% and occupancy rate (OCC) up by 1.6 percentage points. Same-store RevPAR increased by 0.9%, with ADR down by 0.6% and OCC up by 1.1 percentage points [3] - The company plans to open over 1,800 new stores in 2024, indicating a strong growth strategy [3] Market Data - The stock price range over the past 52 weeks is between HKD 23.45 and HKD 37.10 [4] - The current market capitalization is HKD 106.906 billion, with a total share count of 3.21 billion shares [4]

Investment Rating - The investment rating for the company is "Buy" [2][3] Core Views - In Q1 2024, the company's revenue exceeded previous guidance, with adjusted net profit doubling. Revenue reached 5.278 billion RMB, up 17.80%, surpassing the guidance of 12-16%. Adjusted net profit was 659 million RMB, a year-on-year increase of approximately 101% [6][9] - The domestic hotel sector's overall REVPAR increased by 3.1%, leading the industry, with rapid store openings contributing to revenue and adjusted profit growth. The company opened a record 569 new stores in Q1 2024, reflecting strong franchisee recognition [6][9] - The company expects Q2 revenue growth of 7-11%, supported by strong brand and operational efficiency, despite potential fluctuations in REVPAR due to high base effects from the previous year [6][9] Summary by Sections Financial Performance - In Q1 2024, the company achieved a revenue of 5.278 billion RMB, a 17.80% increase, and an adjusted net profit of 771 million RMB, marking a 101% year-on-year growth. The decline in net profit was primarily due to foreign exchange fluctuations and previous investment gains [6][9] - The domestic hotel revenue was approximately 4.2 billion RMB, up 18.1%, exceeding the guidance of 11-15%. Adjusted EBITDA and net profit were 1.487 billion RMB and 945 million RMB, respectively, reflecting year-on-year increases of about 32% and 72% [6][9] Market Position - The company leads the domestic hotel industry with a REVPAR increase of 3.1%, outperforming competitors. The overall performance is attributed to timely product updates and efficient operational management [6][9] - The company has a total of 9,817 hotels and 955,657 rooms as of Q1 2024, with a significant portion being franchise-operated [6][9] Future Outlook - The company anticipates a stable revenue growth of 7-11% in Q2 2024, with an annual growth forecast of 8-12%. The growth is supported by ongoing product upgrades and expansion plans, including the opening of 1,800 new stores in 2024 [6][9] - Long-term growth prospects remain strong, with the company positioned as a leader in the Chinese hotel industry, expected to deliver stable growth and capital returns [6][9]