Core Viewpoint - The company reported its Q1 2025 unaudited financial performance, showing stable revenue growth but facing challenges in profit margins and RevPAR due to market conditions [1][2] Financial Performance - In Q1 2025, the company achieved revenue of 5.4 billion yuan, a year-on-year increase of 2.2%, with leasing and owned hotels down 10.0% and franchise and licensed hotels up 21.1% [1] - Adjusted net profit for Q1 2025 was 780 million yuan, reflecting a 0.5% year-on-year growth, impacted by high income tax [1] - The overall revenue performance aligns with previous guidance, while gross margin improved by 0.7 percentage points, and SG&A expenses decreased by 0.6 percentage points [1] Market Conditions - The hotel industry continues to experience supply-demand imbalance, with the company's RevPAR declining by 3.9% in Q1 2025, primarily due to a 2.6% drop in ADR [1] - Same-store RevPAR fell by 8.3%, indicating pressure from product quality upgrades and increased market supply [1] - Despite these challenges, the company opened 694 new hotels in Q1 2025, with a total of 2,865 stores in reserve as of the end of March 2025, 61.1% of which are mid-range and above [1] Future Outlook - The company is expected to generate revenues of 24.857 billion yuan, 26.444 billion yuan, and 28.273 billion yuan for 2025-2027, with corresponding growth rates of 4.0%, 6.4%, and 6.9% [2] - Projected net profits for the same period are 4.222 billion yuan, 5.011 billion yuan, and 5.701 billion yuan, with growth rates of 38.5%, 18.7%, and 13.8% respectively [2] - The company maintains a stable leading position in the market, with significant potential for brand expansion and globalization, leading to a "buy" rating [2]

Group 1: Company Name Change - Xinhua Group plans to change its name from "Xinhua Cultural Tourism Development Co., Ltd." to "Beijing Tongguan Yingxin Cultural Tourism Development Co., Ltd." and its stock abbreviation from "Xinhua" to "Yingxin Development" [1] Group 2: H World Group Financial Performance - H World Group reported a net profit attributable to shareholders of approximately RMB 894 million for Q1 2025, a year-on-year increase of about 35% [2] - The total revenue for H World Group in Q1 2025 was RMB 22.5 billion, reflecting a year-on-year increase of 14.3% [2] - The company expects revenue growth of 1% to 5% for Q2 2025 compared to Q2 2024 [2] Group 3: Atour Group Financial Performance - Atour Group achieved a revenue of RMB 1.906 billion in Q1 2025, representing a year-on-year growth of 29.8% [3] - The adjusted net profit for Atour in Q1 2025 was RMB 345 million, a year-on-year increase of 32.3% [3] - Atour has raised its full-year revenue guidance, expecting a growth of 25% to 30% for 2025 [3] Group 4: Elderly Services Development - The Ministry of Civil Affairs and 19 other departments issued guidelines to encourage the development of services for elderly social participation, aiming for a preliminary policy environment by 2029 [4] - The guidelines emphasize the need for diverse and personalized employment opportunities for the elderly by 2035 [4][5] - The initiative includes enhancing cultural services for the elderly and promoting travel and leisure products tailored to their needs [5] Group 5: Real Estate Auction - Shanghai Tengqi Zhisheng Commercial Management acquired 65 commercial properties in Minhang District for approximately RMB 249.6 million, which is about 56% of the assessed value [6] - The properties had a total construction area of 9,438.23 square meters and were previously auctioned unsuccessfully [6] - The acquiring company was established in April 2025 and is involved in various commercial management services [6]

以下是华住集团 FY25 Q1 的财报电话会纪要，财报解读请移步《量价齐跌！华住还能深蹲起跳么？ - LongPort》 一、财报核心信息回顾 2.1 高管陈述核心信息 1、市场趋势与运营表现 RevPAR 承压：同比下降3.9%，ADR 降2.6%，入住率降1%，主因 2024 年行业供给集中释放。 2、网络扩张与储备 | | Huazhu Group results wrap | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Rmb '00mm 1Q19 2Q19 | 3Q19 4Q19 1Q28 2023 | 3023 | 4Q23 | 1Q24 | 2Q24 | 3Q24 | 4Q24 | 1Q25 | 1Q25E | var. | | Total revenue 23.9 | 28.6 30.6 29.1 44.8 55.3 | 62.9 | 55.9 | 52.8 | 61.5 | 64.4 | 60.2 | 54.0 | 54.9 | -1.7% | | yoy 14 ...

Investment Rating - The report maintains a "Strong Buy" rating for the company [4] Core Views - The company's Q1 2025 revenue of 5.4 billion yuan represents a 2.2% year-on-year increase, aligning with the guidance of 0%-4% [7] - Adjusted EBITDA and net profit for Q1 2025 were 1.5 billion yuan and 780 million yuan, showing year-on-year growth of 5.3% and 0.5% respectively [7] - The domestic hotel segment achieved an adjusted EBITDA of 1.6 billion yuan, reflecting a 6.7% increase year-on-year [7] - The company has a robust membership system and an attractive investment return model, which is expected to attract more franchisees and accelerate store expansion [7] Financial Performance - The company reported a total revenue of 21.882 billion yuan for 2023, with a projected growth of 9% in 2024 and 5% in 2025 [3] - The adjusted net profit for 2025 is estimated at 3.926 billion yuan, representing a 29% increase compared to 2024 [3] - The company’s gross margin improved to 33.2% in Q1 2025, an increase of 0.7 percentage points year-on-year [7] - The total number of domestic hotels reached 11,564, marking a 19.4% increase, with a net addition of 539 hotels in Q1 2025 [7] Market Position - The company’s current stock price is 28.7 HKD, with a market capitalization of 174.1 billion HKD [4] - The company has a return on equity (ROE) of 29.0% and a debt-to-asset ratio of 82.7% [4] - The company is expected to see a revenue growth of 1%-5% in Q2 2025, with domestic hotel revenue projected to grow by 3%-7% [7]

Investment Rating - The report maintains a "Buy" rating for the company [2][6][16] Core Insights - The company reported Q1 2025 earnings that met expectations, with total revenue of 5.4 billion RMB, reflecting a year-on-year growth of 2.2% [6] - The domestic hotel segment generated revenue of 4.5 billion RMB, up 5.5% year-on-year, exceeding the previously announced guidance [6] - The company is focusing on expanding its mid-range and high-end hotel brands while maintaining a core structure of economy and mid-range hotels [6] - The overall hotel occupancy rate slightly declined due to a significant increase in supply, while overseas hotel performance improved [6] - Membership and central reservation contributions are on the rise, with the overseas segment accelerating its asset-light transformation [6] - The company has adjusted its profit forecasts for 2025-2026, expecting net profits of 4.599 billion RMB and 5.258 billion RMB respectively [6] Financial Data and Profit Forecast - Projected revenues for 2023 to 2027 are as follows: 21,882 million RMB (2023), 23,891 million RMB (2024), 24,466 million RMB (2025E), 25,434 million RMB (2026E), and 26,402 million RMB (2027E) [5][7] - The expected net profit for 2025 is 4,599 million RMB, with a growth rate of 50% year-on-year [5] - The company anticipates a gross margin improvement from 34% in 2023 to 38% in 2027 [5][7]

Investment Rating - The investment rating for the company is "Outperform the Market" [7] Core Views - The company is experiencing short-term disruptions due to industry cycles but is focusing on high-quality expansion and internal improvements. The first quarter revenue met expectations, with hotel operating revenue around 22.5 billion RMB, a year-on-year increase of 14.3%, and total revenue of approximately 5.4 billion RMB, a year-on-year increase of 2.2% [1][11] - The company aims to maintain a balance between expansion and internal strengthening, with a focus on high-quality growth despite uncertainties in the environment [5][19] Summary by Sections Domestic Hotels - In Q1, domestic revenue was 4.481 billion RMB, up 5.5% year-on-year, with direct-operated hotels down 9.4% and franchise hotels up 21.1%. The overall RevPAR decreased by 3.9%, with same-store RevPAR down 8.3% [2][16] - The company opened 694 new hotels and closed 155, with a total of 11,564 hotels by the end of Q1. The target for new openings in 2025 is approximately 2,300 hotels [2][16] Overseas Hotels - Q1 overseas revenue was 918 million RMB, down 11.3%, with direct-operated revenue down 11.2%. The company is transitioning 10 direct-operated hotels to a light-asset franchise model, which has impacted short-term performance [3][17] - The adjusted EBITDA for overseas operations was -77 million RMB, indicating increased losses primarily due to the transition to a light-asset model and restructuring efforts [3][17] Future Outlook - The company expects Q2 revenue growth of 1-5%, with domestic growth of 3-7% and franchise revenue growth of 18-22%. The management anticipates a narrowing decline in RevPAR in Q2, aiming for at least flat or growth for the year [4][18] - The company continues to focus on brand upgrades, member direct sales, and light-asset strategies, with a significant portion of its hotels in lower-tier cities [4][18] Financial Projections - The adjusted net profit estimates for 2025-2027 are 4.66 billion, 5.37 billion, and 6.13 billion RMB, respectively, with a CAGR of 18%. The dynamic PE ratios are projected to be 17, 15, and 13 times for the respective years [5][19][6]

Investment Rating - The investment rating for the company is "Outperform the Market" [7] Core Views - The company is experiencing short-term disruptions due to industry cycles but is focusing on high-quality expansion and internal improvements. The first quarter revenue met expectations, with hotel operating revenue around 22.5 billion RMB, a year-on-year increase of 14.3%, and total revenue of approximately 5.4 billion RMB, a year-on-year increase of 2.2% [1][11] - The company aims for a revenue growth of 1-5% in Q2, with domestic segments expected to grow by 3-7% and franchise revenue by 18-22%. The management anticipates a narrowing decline in RevPAR in Q2, with a goal of at least maintaining or growing throughout the year [4][18] Summary by Sections Domestic Hotels - In Q1, domestic revenue was 4.481 billion RMB, up 5.5% year-on-year. Direct-operated hotels saw a decline of 9.4%, while franchise revenue increased by 21.1%. The overall RevPAR decreased by 3.9%, with same-store RevPAR down by 8.3% [2][16] - The company opened 694 new hotels and closed 155, with a total of 11,564 hotels by the end of Q1. The company plans to open approximately 2,300 new hotels throughout the year [2][16] Overseas Hotels - Q1 overseas revenue was 918 million RMB, down 11.3%. The decline was primarily due to the transition of 10 direct-operated hotels to a light-asset franchise model and the closure of one direct-operated hotel. The adjusted EBITDA for Q1 was -77 million RMB, indicating an increase in losses due to restructuring [3][17] Financial Forecasts - The company maintains adjusted net profit forecasts for 2025-2027 at 4.66 billion, 5.37 billion, and 6.13 billion RMB, respectively, with a three-year CAGR of 18%. The dynamic PE ratios are projected to be 17, 15, and 13 times for the respective years [5][19] - The company has a shareholder return plan of 2 billion USD over three years, which adds marginal appeal to the investment [5][19]

Core Insights - H World Group Limited (HTHT) reported first-quarter 2025 results with earnings and revenues missing the Zacks Consensus Estimate, although both metrics increased year-over-year [1][3] Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 were 34 cents, missing the consensus estimate of 42 cents by 19.1%, compared to 29 cents in the prior-year quarter [3] - Quarterly revenues reached $744 million, falling short of the consensus mark of $754 million by 1.3%, but representing a 1.8% increase from $731 million in the same quarter last year [3] - Selling, General and Administrative expenses were $104 million, significantly higher than $36 million reported in the prior-year quarter [4] - The operating margin improved by 110 basis points year-over-year to 20.1%, driven by higher revenue contributions from manachised and franchised businesses [4] - Adjusted EBITDA was $206 million, reflecting a 4.6% increase from the previous year's figure [4] Balance Sheet - As of March 31, 2025, cash and cash equivalents stood at $1.1 billion, up from $818 million in the prior-year quarter [5] - Long-term debt increased to $609 million from $228 million reported in Q1 2024 [5] Business Operations - H World operated a global network of 11,685 hotels with a total of 1,142,158 rooms as of March 31, 2025, including 11,564 properties under the Legacy-Huazhu brand and 121 under Legacy-DH [6] - In Q1 2025, the Legacy-Huazhu segment added 694 new hotels, with 692 under the manachised and franchised model, while closing 155 properties [6] - The company maintains a robust development pipeline of 2,888 unopened hotels, with 2,865 from Legacy-Huazhu and 23 from Legacy-DH [6] Strategic Outlook - The company expressed a cautious stance regarding persistent tariff challenges and broader macroeconomic uncertainties [2] - H World emphasized its asset-light strategy, focusing on high-quality network expansion, strengthened brand positioning, service excellence, and enhanced sales capabilities through its H Rewards membership program to drive growth [2]

Core Viewpoint - H World Group (华住集团) experienced a significant stock decline of 4.7% following the release of its Q1 2025 unaudited financial results, reflecting market concerns about its performance amidst industry pressures [1][2]. Financial Performance - In Q1 2025, H World Group reported hotel revenue of 22.5 billion RMB, a year-on-year increase of 14.3% [1]. - The company's total revenue for the quarter was 5.395 billion RMB, showing a year-on-year growth of 2.2%, attributed to the substantial increase in management franchise and licensing income under its light-asset model [1]. - However, the revenue saw a quarter-on-quarter decline of 10.4% [1]. Operational Metrics - As of the end of Q1 2025, H World Group operated 11,685 hotels, with 11,564 located in China, including 552 leased and owned hotels and 11,012 managed franchise and licensed hotels [1]. - The average daily room rate (ADR) for H World China in Q1 was 272 RMB, down from 280 RMB in the same period last year and 277 RMB in the previous quarter [1][2]. - The occupancy rate for H World China was 76.2%, which, while significantly above the industry average, represented a decline from 77.2% year-on-year and 80.0% quarter-on-quarter [2]. Profitability - H World Group achieved a net profit attributable to shareholders of 894 million RMB in Q1, marking a year-on-year increase of 35.7% [2]. - The company's EBITDA for the quarter was 1.615 billion RMB, also showing substantial year-on-year growth [2]. Future Outlook - For Q2 2025, H World Group anticipates revenue growth between 1% to 5%, or 3% to 7% excluding certain factors [2]. - The CEO emphasized a commitment to long-term strategies, focusing on quality network expansion, brand positioning, and enhancing sales capabilities through its membership program [2].

Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 33.5, indicating a potential upside from the current price of HKD 28.70 [1][2]. Core Insights - The company reported Q1 2025 revenue of RMB 5.4 billion, a year-on-year increase of 2.2%, and a net profit of RMB 890 million, up 35.7% year-on-year. Adjusted EBITDA was RMB 1.5 billion, reflecting a 5.3% increase [7]. - The company is focusing on a light-asset strategy, with rental and owned income accounting for 51.7% of total revenue, while management franchise and licensing contributed 46.3% [3][7]. - The overall hotel count reached 11,685, with 11,564 under the main brand and 121 under the DH division, indicating a net addition of 539 hotels in the reporting period [7]. - The gross margin improved by 0.74 percentage points to 33.2%, driven by the light-asset strategy, while the expense ratio decreased by 0.72 percentage points to 14.46% [7]. - The report anticipates a gradual improvement in RevPAR as the peak season approaches, despite short-term pressures from competition and economic factors [7]. Financial Summary - The company is projected to achieve net profits of RMB 3.68 billion, RMB 4.22 billion, and RMB 4.84 billion for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 20.6%, 15%, and 14.6% [9]. - Earnings per share (EPS) are expected to be RMB 1.20, RMB 1.38, and RMB 1.58 for the same years, with corresponding price-to-earnings (P/E) ratios of 22x, 19x, and 17x, indicating reasonable valuation [9][12]. - The total revenue is forecasted to grow from RMB 25.15 billion in 2025 to RMB 29.85 billion by 2027, reflecting a steady upward trend [12].