Investment Rating - The report maintains a "Buy" rating for Huazhu (HTHT) [2][5] Core Insights - Huazhu's third-quarter performance exceeded expectations, with revenue reaching RMB 7 billion, a year-on-year increase of 8.1%, surpassing previous guidance of 2%-6% [5] - The company continues to expand its light-asset model, with a significant increase in revenue from management and franchise operations, which grew by 27.2% to RMB 3.3 billion [5] - The introduction of the new mid-to-high-end brand "Quanjing Daguan" aims to enhance the company's brand portfolio [5] Financial Data and Earnings Forecast - Revenue projections for Huazhu are as follows: - 2023: RMB 21,882 million - 2024: RMB 23,891 million - 2025E: RMB 25,378 million - 2026E: RMB 26,562 million - 2027E: RMB 28,011 million - Net profit forecasts are: - 2023: RMB 4,085 million - 2024: RMB 3,048 million - 2025E: RMB 4,740 million - 2026E: RMB 5,742 million - 2027E: RMB 6,259 million - The gross margin is expected to improve from 34% in 2023 to 41% by 2027 [4][6] Operational Highlights - As of the end of Q3 2025, Huazhu operates 12,702 hotels globally, with a total of 1.246 million rooms [5] - The company opened 749 new hotels in Q3 2025, aiming for a total of 2,300 new openings for the year [5] - The domestic RevPAR for Q3 2025 was RMB 256, showing a slight decline of 0.1% year-on-year, while the overseas RevPAR improved by 6.1% to €87 [5] Strategic Developments - The company is focused on enhancing its mid-to-high-end offerings and has launched the "Quanjing Daguan" brand to diversify its product line [5] - A dividend payment of approximately RMB 1.8 billion in Q3 reflects the company's confidence in future cash flows and commitment to shareholder returns [5]

Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Insights - The company reported Q3 2025 revenue of 7 billion yuan, a year-on-year increase of 8.1%, exceeding guidance [4][12] - Adjusted net profit for Q3 2025 was 1.52 billion yuan, up 10.8% year-on-year, with a net profit margin increase of 0.5 percentage points [4][12] - The company has opened over 2,000 new hotels year-to-date, indicating strong expansion [14] Summary by Sections Financial Performance - Q3 2025 revenue reached 70 billion yuan, with M&F revenue at 33 billion yuan, reflecting a 27.2% year-on-year growth [4][12] - The adjusted net profit for Q3 2025 was 15.2 billion yuan, marking a 10.8% increase year-on-year, with an adjusted net profit margin improvement of 0.5 percentage points [4][12] Operational Metrics - The domestic RevPAR for Q3 2025 was 256 yuan, a slight decrease of 0.1% year-on-year, while the ADR increased by 0.9% [14] - The company opened 749 new hotels in Q3 2025, with a total of over 2,000 new hotels opened this year, suggesting an annual opening rate exceeding the previous guidance of 2,300 hotels [14] Strategic Outlook - The company maintains a strong market position with a focus on high-quality expansion and a light-asset strategy, which has led to a steady increase in franchise business profitability [13][15] - Revenue projections for 2025-2027 are estimated at 250.95 billion yuan, 266.46 billion yuan, and 284.94 billion yuan, with corresponding growth rates of 5.0%, 6.2%, and 6.9% [15]

Core Insights - The Chinese hotel industry is transitioning from extensive growth driven by scale to a new normal focused on meticulous management and quality improvement, as indicated by the "14th Five-Year Plan" [1][2] - The industry is experiencing structural upgrades rather than a simple recovery, driven by a mismatch between supply and demand, leading to a reconfiguration of value [1][2] Industry Overview - The hotel industry's current challenges stem from the failure of old growth models rather than a lack of demand [2] - The "14th Five-Year Plan" promotes high-quality development in the service sector, creating opportunities in experience-oriented and scenario-based hotel demands, as well as in the lower-tier market [2][6] - The industry is shifting from a focus on scale to value cultivation, with leading brands leveraging standardization and efficiency to dominate market consolidation [2][6] Company Performance - Huazhu Group reported a resilient performance in Q3 2023, achieving revenue of 18.78 billion yuan and a net profit of 3.907 billion yuan, representing year-on-year growth of 5.12% and 30.28% respectively [2][3] - In Q3, Huazhu's revenue reached approximately 7 billion yuan, an increase of 8.1% year-on-year, with management and franchise income growing by 27.2% to 3.3 billion yuan [2][3] - The company's domestic revenue was 5.7 billion yuan, reflecting a year-on-year increase of 10.8% [2][3] Key Metrics - Huazhu's RevPAR (Revenue per Available Room) was 256 yuan in Q3, stable year-on-year but up 8.94% quarter-on-quarter [3] - The ADR (Average Daily Rate) was recorded at 304 yuan, showing a slight year-on-year increase of 1% and a quarter-on-quarter growth of 4.83% [3] - The occupancy rate (OCC) was 84.1%, significantly higher than that of comparable hotel groups [3] Membership and Customer Engagement - Huazhu's membership program, "Huazhu Club," has over 300 million members, with a year-on-year growth of 17.3% [3][4] - The program has enhanced customer loyalty, with a 19% increase in member bookings [3][4] Strategic Initiatives - Huazhu is focusing on supply-side reform as a key opportunity, aiming to become the "infrastructure" of China's accommodation industry [6][10] - The company is committed to enhancing its brand matrix to meet diverse consumer demands rather than merely expanding in scale [7][10] - Huazhu's long-term strategy emphasizes deep local engagement and quality improvement, aiming to redefine the hotel industry in China [10][11] Future Outlook - The company plans to leverage its scale and brand advantages to penetrate lower-tier markets and enhance its presence in the mid-to-high-end segments [5][10] - Huazhu's leadership believes that the supply-side reform in the hotel industry is just beginning, with significant opportunities ahead [8][10]

Investment Rating - The report assigns a "BUY" rating for the company, with a target price of HKD 39.5, indicating a potential upside from the current price of HKD 34.10 [1][7]. Core Insights - The company reported a revenue of RMB 6.96 billion for Q3 2025, representing an 8% year-on-year increase, and a net profit of RMB 1.47 billion, up 15.4% year-on-year. Adjusted EBITDA reached RMB 2.5 billion, reflecting a 19% increase [8]. - The company has shown a consistent improvement in its business operations, with a significant increase in the number of hotels and a stable RevPAR performance [12]. - The report anticipates continued growth in net profit for 2025-2027, with projections of RMB 4.31 billion, RMB 4.79 billion, and RMB 5.50 billion respectively, reflecting year-on-year growth rates of 41%, 11%, and 15% [12]. Company Overview - The company operates in the tourism and leisure industry, with a market capitalization of RMB 77.71 billion and a total share count of approximately 3,069.39 million [2]. - The company has a diversified revenue model, with 50.1% from leasing and owned properties, and 47.5% from management franchises and licensing [4]. Financial Performance - The company achieved a gross margin of 41.65% and an operating margin of 29.4% in Q3 2025, indicating improved profitability [12]. - The report highlights a decrease in the expense ratio by 2.48 percentage points year-on-year, attributed to cost control measures and operational efficiency [12]. Future Outlook - The company is expected to benefit from marginal improvements in hotel supply and continued penetration into lower-tier cities, alongside product upgrades and cost management strategies [12]. - The report suggests that RevPAR may see growth in Q4 2025, supported by the company's strategic initiatives [12].

Core Insights - Huazhu Group Limited reported a total transaction value of hotel room and non-room revenue of 30.6 billion RMB, a year-on-year increase of 17.5% [1] - Total revenue increased by 8.1% to 7 billion RMB, with net profit attributable to shareholders reaching 1.5 billion RMB, up 15.4% compared to the same period in 2024 [1] - Adjusted net profit was approximately 1.52 billion RMB, a year-on-year growth of 10.8%, while adjusted EBITDA reached 2.5 billion RMB, increasing by 18.9% [1] Financial Performance - Huazhu's China business revenue was 5.7 billion RMB, reflecting a year-on-year growth of 10.8%, while international revenue was 1.2 billion RMB, showing a decline of 3.0% [1] - The management and franchise revenue segment saw significant growth, increasing by 27.2% to 3.3 billion RMB [1] Operational Metrics - As of September 30, 2025, Huazhu operated 12,702 hotels globally, with a total of approximately 1.246 million rooms [1] - In China, the number of operating hotels was 12,580, with around 1.22 million rooms, and there are 2,727 hotels under development [1] - In the third quarter, Huazhu opened 749 new hotels, marking a quarterly record for the year, with a total of over 2,000 new openings year-to-date and an expectation of 2,300 new hotels by year-end [1] Operational Efficiency - The average daily rate for Huazhu's China business in the third quarter was 304 RMB, showing slight increases year-on-year and quarter-on-quarter [2] - The occupancy rate was 84.1%, slightly lower than the 84.9% recorded in the same period of 2024 [2] - The blended average revenue per available room remained stable at 256 RMB [2]

Core Insights - The article emphasizes the focus on value investing in Asia, particularly in Hong Kong, targeting stocks with significant discrepancies between market price and intrinsic value [1] - It highlights two main categories of investment opportunities: deep value balance sheet bargains and wide moat stocks, which are characterized by their strong competitive advantages [1] Group 1: Investment Strategy - The research service aims to identify deep value stocks, such as net cash stocks and low price-to-book (P/B) ratio stocks, which are available at a discount [1] - It also seeks wide moat stocks, which are high-quality businesses with sustainable competitive advantages, often referred to as "Magic Formula" stocks [1] Group 2: Market Focus - The primary focus is on the Asian equity market, with a particular emphasis on Hong Kong-listed stocks [1] - The service provides monthly updates and watch lists to assist value investors in tracking potential investment opportunities [1]

Core Insights - Huazhu Group reported a hotel revenue of 30.6 billion yuan in Q3 2025, representing a year-on-year growth of 17.5% [1] - The group's total revenue reached 7 billion yuan, an increase of 8.1% year-on-year, with adjusted net profit at 1.52 billion yuan, up 10.8% [1] - Adjusted EBITDA for the quarter was 2.5 billion yuan, reflecting an 18.9% increase year-on-year [1] Financial Performance - The total number of operating hotels globally reached 12,702, a 17.1% increase year-on-year, with total rooms at 1,246,240, up 17.3% [1] - In Q3, Huazhu opened 749 new hotels in China, marking a record high for the year, bringing the total operating hotels in China to 12,580 and total rooms to 1,220,297 [1] - The number of hotels awaiting opening stands at 2,727 [1] Strategic Focus - Huazhu continues to focus on economy and mid-scale hotels, aligning with consumer trends for high cost-performance [1] - The company is enhancing its competitive advantage through a series of refined management measures, including coordinated pricing and promotional controls [1] Operational Metrics - In Q3, Huazhu's average daily rate (ADR) was 304 yuan, occupancy rate (OCC) at 84.1%, and revenue per available room (RevPAR) at 256 yuan, all showing positive trends [2] - These metrics reached 100.9%, 99.2%, and 99.9% of the levels seen in the same period of 2024, indicating a successful balance between scale and lean growth [2] Membership and Direct Sales - The Huazhu membership program saw a 17.3% year-on-year increase, surpassing 300 million members, making it the largest globally [2] - Membership bookings increased by 19.7%, totaling over 66 million nights, accounting for 74% of total bookings [2] - Future plans include enhancing member benefits, expanding points usage, and deepening cross-industry collaborations to strengthen direct sales capabilities [2]

Group 1 - The core viewpoint of the report is that Daiwa maintains an "Outperform" rating for Huazhu Group-S (01179) and raises the target price from HKD 30.5 to HKD 36.5 due to a faster-than-expected recovery in average room revenue [1] - The company’s adjusted EBITDA for Q3 shows a robust growth of 19% year-on-year, reaching RMB 2.513 billion, which exceeds market expectations of RMB 2.414 billion [1] - The adjusted EBITDA margin increased by 3.3 percentage points year-on-year to 36.1%, indicating improved operational efficiency [1] Group 2 - Daiwa believes that the temporary oversupply situation in the Chinese hotel industry has gradually eased over the past two to three months, allowing for a rebound in average room revenue [1] - The EBITDA forecasts for the company for the years 2025 to 2027 have been raised by 11% to 13% [1]

该行相信，中国酒店业暂时性的供过于求情况已于过去两至三个月逐渐舒缓，行业的平均客房收益将可 回升。 智通财经APP获悉，大和发表研报称，继续给予华住集团-S(01179)"跑赢大市"的评级，将目标价由30.5 港元升至36.5港元，主要原因在于平均客房收益的恢复速度较预期快，因此上调公司2025至27年的 EBITDA预测11%至13%。 该行表示，第三季业绩稳健增长，经调整EBITDA同比增长19%至25.13亿元人民币，高于市场预测的 24.14亿元人民币；经调整EBITDA利润率同比增3.3个百分点至36.1%。 ...

该行相信，中国酒店业暂时性的供过于求情况已于过去两至三个月逐渐纾缓，行业的平均客房收益将可 回升。该行表示，由于华住平均客房收益的恢复速度较预期快，因此上调公司2025至27年的EBITDA预 测11%至13%，又将目标价由30.5港元上调至36.5港元，续予"跑赢大市"评级。 大和发表研究报告指，华住集团第三季业绩稳健增长，经调整EBITDA按年增长19%至25.13亿元，高于 市场预测的24.14亿元；经调整EBITDA利润率按年增3.3个百分点至36.1%。 ...