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].

Core Insights - The article highlights the top short-selling stocks in the Hong Kong market, indicating significant investor sentiment against these companies [1][2]. Short Selling Ratios - The top three stocks with the highest short-selling ratios are Great Wall Motors-R (89.22%), Li Ning-R (82.43%), and BYD Company-R (79.48%) [1][2]. - Other notable companies with high short-selling ratios include Baidu Group-SWR (77.03%) and Lenovo Group-R (73.78%) [2]. Short Selling Amounts - The highest short-selling amounts are recorded for Tencent Holdings (67.43 billion), Xiaomi Group-W (56.17 billion), and Alibaba-SW (52.37 billion) [1][2]. - BYD Company also appears in the top short-selling amounts with 38.64 billion [2]. Deviation Values - The stocks with the highest deviation values, indicating a significant difference from their average short-selling ratios over the past 30 days, are Hong Kong Exchanges-R (60.43%), Baidu Group-SWR (52.06%), and BYD Company-R (37.56%) [1][2]. - Great Wall Motors-R and China Bank Hong Kong-R also show notable deviation values of 35.61% and 35.39%, respectively [2].

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]

Core Insights - H World Group reported a revenue of 60 billion yuan in Q4 2024, a year-on-year increase of 7.8%, with hotel revenue reaching 237 billion yuan, up 16.5% [1] - For the full year 2024, the company achieved a total revenue of 239 billion yuan, reflecting a 9.2% increase, while hotel revenue was 928 billion yuan, marking a 15.5% growth [1] Group 1: Financial Performance - In Q4 2024, H World Group's hotel revenue was 237 billion yuan, showing a year-on-year growth of 16.5% [1] - The total revenue for the year 2024 was 239 billion yuan, which is a 9.2% increase compared to the previous year [1] - The company reported a total hotel revenue of 928 billion yuan for the year, reflecting a growth of 15.5% [1] Group 2: Operational Metrics - H World Group's occupancy rate in China was 81.2% in 2024, with a slight increase of 0.2 percentage points year-on-year [2] - The average daily rate (ADR) in China was 289 yuan, while the revenue per available room (RevPAR) was 235 yuan, indicating stable performance [2] - Internationally, key operational metrics for H World Group showed growth, with ADR increasing by 1.5%, occupancy rate rising by 2.7 percentage points, and RevPAR up by 5.9% [2] Group 3: Market Expansion - By the end of 2024, H World Group had 11,025 hotels in operation in China, covering 1,380 cities, an increase of 123 cities from the previous year [3] - The proportion of hotels in third-tier cities and below increased by 2 percentage points to 42% [3] - The company has 2,988 hotels under development, with 54% of these located in third-tier cities and below, which is 12 percentage points higher than the proportion of operating hotels [3] Group 4: Product and Brand Development - H World Group launched new hotel models, including "Hello 2.0" and "Haiyou," focusing on enhancing customer experience and operational efficiency [7][8] - The company reported that 36% of its HanTing hotels are now rated 3.5 stars and above, a 15 percentage point increase from the previous year [9] - The number of mid-to-high-end hotels in operation and under development grew by 35%, reaching 873 and 521 respectively [11] Group 5: Strategic Outlook - H World Group aims to continue its focus on high-quality development and expand its presence in lower-tier cities and untapped markets [11] - The company plans to enhance its brand and service quality, emphasizing customer-centric strategies and product upgrades [11] - H World Group is positioned as a "pathfinder" in the hotel industry, committed to improving service quality in response to government initiatives aimed at boosting consumption [12]

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]

Exhibit 99.1 Contact Information Investor Relations Tel: +86 (21) 6195 9561 Email: ir@hworld.com https://ir.hworld.com H World Group Limited Reports Fourth Quarter and Full Year of 2024 Unaudited Financial Results Hotel turnover refers to total transaction value of room and non-room revenue from H World hotels (i.e., leased and operated, manachised and franchised hotels). The conversion of Renminbi ("RMB") into United States dollars ("US$") is based on the exchange rate of US$1.00=RMB7.2993 on December 31, ...

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]

Core Viewpoint - The Chinese hotel industry in 2024 is expected to face "weak expectations" realization and an imbalance in supply and demand. However, there are potential opportunities in the South China market, hotel product renewal demands, and the growth potential of leading brands in lower-tier markets [1][5][8]. Group 1: Market Dynamics - The competition landscape in South China is evolving, with some latecomers gaining market share, leveraging core brands to penetrate the region effectively. Continuous monitoring of penetration progress and market share growth is recommended [1][11]. - The hotel product renewal demand is changing, with an increasing proportion of hotels aged 6-10 years across major groups by the end of 2024 compared to the end of 2023. This trend indicates a potential rise in the number of hotels needing renovation in the next 1-2 years, leading to possible shifts in brand competition dynamics [1][25][26]. Group 2: Supply and Demand Changes - The hotel industry's supply-demand relationship has undergone significant changes from 2023 to 2024. Initially, there was a "supply shortage" due to pandemic impacts, followed by a recovery phase where demand surged, attracting more investors and increasing supply. However, demand has shown signs of divergence, with leisure travel continuing while business travel remains slow to recover [5][7][8]. - The overall RevPAR for the Chinese hotel industry is projected to decline by approximately 5% year-on-year in 2024, reflecting a cautious market outlook influenced by high base effects and slow recovery in business travel demand [5][7]. Group 3: Competitive Landscape in South China - The existing competitive landscape shows that major groups like Jinjiang and Eastern Group have a significant presence in South China, with approximately 20% and 40% of their hotels located in the region, respectively. In contrast, Huazhu has a weaker presence, with only about 6% of its hotels in South China [11][12][19]. - There is still potential for brand updates and renovations in the South China market, with a notable percentage of hotels needing upgrades. Continuous observation of the competitive dynamics and brand selection for these renovations is advised [12][19]. Group 4: Product Renewal and Aging Issues - The aging of hotel products is becoming more pronounced, particularly in the economy and light management segments. Major brands are facing increasing pressure to renovate or update their offerings, with a significant portion of their hotels aged 6-10 years [25][30][33]. - The current market presents four potential paths for franchisees with aging products: upgrading existing brands, switching to leading brands, opting for soft brands with lower investment, or maintaining the status quo, which may lead to declining profitability [27][30].

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]