Investment Rating - The report maintains a "Buy" rating for the company [1][10]. Core Insights - The company reported Q4 2023 earnings with revenue of 5.59 billion CNY, a year-on-year increase of 50.7%, and an adjusted net profit of 660 million CNY, marking a turnaround from losses [1]. - The revenue growth in Q4 exceeded expectations, driven by a strong recovery in domestic RevPAR, with LH revenue at 4.38 billion CNY (+59.0%) and DH revenue at 1.20 billion CNY (+26.6%) [1]. - The company anticipates a revenue growth of 12% to 16% in Q1 2024 and a full-year growth guidance of 8% to 12% [1]. - The company plans to open 1,800 new hotels in 2024, with a net opening target of 1,150 hotels, reflecting a 35% increase from the previous year [1]. Summary by Sections Financial Performance - Q4 2023 adjusted EBITDA reached 1.27 billion CNY, a significant increase of 219% year-on-year, with an adjusted EBITDA margin of 22.7% [1]. - The company expects adjusted net profits of 4.56 billion CNY, 5.48 billion CNY, and 6.17 billion CNY for 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 20.5, 17.0, and 15.1 [4][7]. Revenue Growth - The company achieved a revenue of 21.88 billion CNY in 2022, with a growth rate of 57.9%, and forecasts revenue of 24.47 billion CNY in 2024, representing an 11.8% growth [4][7]. - The RevPAR recovery for LH and DH reached 120% and 111% of 2019 levels respectively, indicating strong demand recovery [1]. Expansion Strategy - The company has a robust pipeline with 3,098 hotels planned for opening, indicating a strong growth trajectory [1]. - The focus on enhancing service quality and customer experience aligns with current consumer trends towards experiential services [1].

H World Group Limited (NASDAQ:HTHT) Q4 2023 Results Conference Call March 20, 2024 9:00 PM ET Company Participants Jason Chen - Investor Relations Director Ji Qi - Chairman Hui Jin - Chief Executive Officer Jun Zou - Executive VP & CFO Conference Call Participants Dan Xu - Morgan Stanley Simon Cheung - Goldman Sachs Ronald Leung - Bank of America Sijie Lin - CICC Lydia Ling - Citi Operator Good day, and thank you for standing by. Welcome to H World Fourth Quarter and Full Year 2023 Earnings Conference Call. ...

证券研究报告 | 2024年03月22日 华住集团-S（01179.HK） 买入 国内净利润较 2019 年增长 149%，2024 年开店目标提速 核心观点 公司研究·财报点评 2023年国内净利润较2019年增长149%，海外EBITDA转正。2023年公司收 社会服务·酒店餐饮 入219亿元/+58%，其中国内收入174亿元/+64%(较19年增长56%)，海外 证券分析师：曾光 证券分析师：钟潇 DH收入44亿元/+37%。Q4公司收入57亿元/+51%,超指引(41-45%)，其中国 0755-82150809 0755-82132098 zengguang@guosen.com.cn zhongxiao@guosen.com.cn 内收入44亿元/+59%，系增长主力。2023年公司归母净利润为41亿元，同 S0980511040003 S0980513100003 比扭亏;其中国内归母净利润44亿，较2019年增长149%；国内经调整EBITDA 证券分析师：张鲁 联系人：杨玉莹 率达39%，较2019年增长9pct，预计系收益管理、经营效率等综合带动。 010-88005377 0755-81 ...

[Table_Title] 证券研究报告 华住集团-S 23 年业绩点评：全年业绩创新 公司研究 高，24 年仍有成长弹性 [Table_ReportType] 公司点评报告 [Table_ReportDate] 2024年3月21日 [华Ta住bl集e_团Sto-cSk(A1n1dR7a9n)k ] [T业ab绩le表_S现um：ma 2r 3y年] 41亿业绩创新高，23Q4体现公司穿越周期能力。公司23 投资评级 年全年实现收入219亿元（同比+58%），对应归母净利润41亿元（22年同 上次评级 期亏损18亿元）。分季度看， 23Q4实现收入56亿元（同比+51%）（Q1~Q3 分别为 45、55、63 亿元），其中境内分部实现收入 44 亿元（同比+59%）； [刘Ta嘉b仁le _社Au零th&o美r]护 首席分析师 23Q4 对应归母净利润 7.4 亿元（22 年同期亏损 1.2 亿元）（Q1~Q3 分别为 执业编号：S1500522110002 10、10、13亿元），其中境内分部净利润8.3亿元（22年同期亏损0.8亿元）。 联系电话：15000310173 考虑23Q4行业需求转弱，公司依 ...

证券研究报告·海外公司点评·旅游及消闲设施(HS) 华住集团-S（01179.HK） 2023 年报点评：Q4 营收超指引，净开店将提 2024年 03月 21日 速 证券分析师 吴劲草 买入（维持） 执业证书：S0600520090006 wujc@dwzq.com.cn [Table_EPS] 盈利预测与估值 2022A 2023A 2024E 2025E 2026E 证券分析师 石旖瑄 营业总收入（百万元） 13,862 21,882 24,189 26,014 27,484 执业证书：S0600522040001 同比 8.42% 57.86% 10.54% 7.55% 5.65% shiyx@dwzq.com.cn 归母净利润（百万元） -1,821 4,085 4,219 4,554 4,902 股价走势 同比 -291.61% 324.33% 3.29% 7.94% 7.64% EPS-最新摊薄（元/股） -0.56 1.25 1.29 1.39 1.50 华住集团-S 恒生指数 P/E（现价&最新摊薄） - 22.66 21.94 20.33 18.89 4% -40% % [ [TT aab ...

股 票 研 究 [Table_industryInfo] 社会服务业 [ Table_Main[华I Tnaf 住bol]e 集_Ti团tle] - S（1179） [评Tab级le_：Inv est] 增持 当前价格（港元）： 31.25 优势明显份额提升，估值有望持续修复 2024.03.21 海 ——华住集团23Q4 业绩点评 [ 交Ta易bl数e_M据a rket] 外 刘越男(分析师) 于清泰(分析师) 52周内股价区间（港元） 23.45-39.50 当前股本（百万股） 3,265 公 021-38677706 021-38022689 当前市值（百万港元） 102,045 司 liuyuenan@gtjas.com yuqingtai@gtjas.com 证书编号 S0880516030003 S0880519100001 （ [ Table_PicQuote] 中 本报告导读： 52周内股价走势图 国 2023Q4 业绩及对 2024 年指引均符合预期，华住自身竞争优势明显，将持续获取份 华住集团-S 恒生指数 额，估值修复进程将持续。 香 9% 摘要： 港 1% [T abl业e_S绩um ...

Full Year RevPAR in China Recovered to 122% of the 2019 LevelSINGAPORE and SHANGHAI, March 20, 2024 /PRNewswire/ -- H World Group Limited ("H World" or "the Group", NASDAQ: HTHT and HKEX: 1179) announced its unaudited financial results for the fourth quarter ("Q4 2023") and full year ended December 31, 2023.Strong Recovery Momentum in Legacy-Huazhu: RevPAR of 2023 Recovers to 122% of 2019 Levels The Interior of the Newly Launched Ji Hotel 5.0 Supported by the sustained recovery in both leisure and busi ...

H World Group (HTHT) came out with quarterly earnings of $0.33 per share, beating the Zacks Consensus Estimate of $0.31 per share. This compares to loss of $0.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.45%. A quarter ago, it was expected that this hotel operator would post earnings of $0.49 per share when it actually produced earnings of $0.56, delivering a surprise of 14.29%.Over the last four quarters, the company ...

Hotel Operations - As of December 31, 2023, H World Group operated a total of 9,394 hotels and 912,444 hotel rooms[1] - The company operates 11% of its hotel rooms under the lease and ownership model, while 89% are under the manachise and franchise model[53] - As of December 31, 2023, the total number of operational hotels reached 9,263, with an additional 3,061 hotels in the pipeline[72] - The company temporarily closed 18 hotels in Q4 2023 for brand upgrades and business model changes[71] - The company added 2 hotels in Q4 2023, bringing the total number of hotels to 131 as of December 31, 2023[85] - The total number of rooms as of December 31, 2023, was 26,814, with 37 unopened hotels in the pipeline[85] - The company has 21 unopened hotels in the pipeline for leased hotels as of December 31, 2023[85] Financial Performance - Revenue for Q4 2023 was RMB5.6 billion (US$786 million), a 50.7% year-over-year increase, surpassing the guidance of 41%-45%[2] - For the full year 2023, revenue reached RMB21.9 billion (US$3.1 billion), a 57.9% increase from 2022[18] - Net income attributable to H World in Q4 2023 was RMB743 million (US$105 million), compared to a net loss of RMB124 million in Q4 2022[3] - For the full year 2023, net income attributable to H World Group Limited was RMB4.1 billion, a recovery from a net loss of RMB1.8 billion in 2022[37] - Operating cash inflow for the full year 2023 was RMB7.7 billion, significantly higher than RMB1.6 billion in 2022, demonstrating improved cash generation capabilities[41] - Net income attributable to H World Group Limited increased significantly from a loss of RMB 124 million in 2022 to a profit of RMB 1,337 million in 2023[67] - Adjusted EBITDA rose dramatically from RMB 398 million in 2022 to RMB 2,186 million in 2023, reflecting a substantial growth of 449%[67] Revenue and Growth Expectations - H World expects revenue growth of 12%-16% for Q1 2024 and 8%-12% for the full year 2024[6] - The company plans to open approximately 1,800 hotels and close around 650 hotels in 2024[6] - The company plans to continue expanding its hotel portfolio and enhancing operational efficiency to drive future growth[60] - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[64] Operating Costs and Expenses - Hotel operating costs in Q4 2023 were RMB4.0 billion, an increase from RMB3.4 billion in Q4 2022 and RMB3.6 billion in Q3 2023, with a year-over-year increase of 17.6% attributed to business recovery and less rental reduction[25] - For the full year 2023, hotel operating costs totaled RMB14.3 billion, up from RMB12.3 billion in 2022, with costs from the Legacy-Huazhu segment representing 60.4% of revenue compared to 86.1% in 2022[26] - Selling and marketing expenses in Q4 2023 were RMB326 million, compared to RMB169 million in Q4 2022, reflecting a year-over-year increase of 92.3% due to higher commissions and promotional expenses[26] - General and administrative expenses in Q4 2023 were RMB644 million, up from RMB440 million in Q4 2022, with the increase mainly due to higher personnel costs[27] Key Performance Indicators - Legacy-Huazhu's RevPAR recovered to 122% of the 2019 level in 2023, driven by strong leisure and business travel demand[15] - Legacy-DH achieved a 14.5% year-over-year RevPAR increase in 2023, with a focus on transforming to a more asset-light model[15] - Average daily room rate for leased and owned hotels improved by 36.9% year-over-year, rising from RMB 272 to RMB 372[77] - The occupancy rate for leased and owned hotels increased by 18.9 percentage points, from 63.9% in 2022 to 82.8% in 2023[77] - RevPAR for leased and owned hotels surged by 77.4%, increasing from RMB 174 in 2022 to RMB 308 in 2023[77] - Same-hotel RevPAR for the quarter ended December 31, 2023, increased by 40.8% year-over-year to $230[82] - Same-hotel occupancy rate for the quarter ended December 31, 2023, improved to 81.2%, a year-over-year increase of 13.9 percentage points[82] - Same-hotel ADR for the quarter ended December 31, 2023, was $248, reflecting a year-over-year increase of 24.1%[82] - The company reported a same-hotel occupancy rate of 84.3% for the year ended December 31, 2023, up 15.2 percentage points year-over-year[84] - The RevPAR for leased hotels increased by 20.9% year-over-year to €74 for the full year ended December 31, 2023[88] Assets and Liabilities - Total current assets increased from RMB 9,178 million in 2022 to RMB 12,056 million in 2023, representing a growth of 31%[57] - Total assets rose from RMB 61,507 million in 2022 to RMB 63,532 million in 2023, an increase of 3%[57] - Total liabilities decreased from RMB 52,704 million in 2022 to RMB 51,283 million in 2023, a reduction of 3%[57] - H World reported cash and cash equivalents of RMB 6,946 million as of December 31, 2023, up from RMB 3,583 million in 2022, a growth of 94%[57] Non-GAAP Measures - Adjusted EBITDA (non-GAAP) for Q4 2023 was RMB1.3 billion (US$178 million), up from RMB398 million in Q4 2022[5] - Adjusted EBITDA is used to assess the operating results of hotels, excluding share-based compensation expenses and gains or losses from fair value changes of equity securities[48] - H World believes that adjusted EBITDA provides a clearer picture of financial performance, as it excludes significant volatility from fair value changes of equity securities[48] - H World emphasizes the importance of non-GAAP financial measures for internal comparisons and investor transparency[50]

Core Viewpoint - H World Group Limited reported significant financial growth for the fourth quarter and full year of 2023, with substantial increases in hotel turnover, revenue, and net income, indicating a strong recovery in the hotel industry post-pandemic [1][24]. Financial Performance - Hotel turnover increased by 55.0% year-over-year to RMB20.4 billion in Q4 2023, and by 65.9% for the full year [1]. - Revenue for Q4 2023 was RMB5.6 billion (US$786 million), a 50.7% year-over-year increase, surpassing previous guidance [1][9]. - Full year revenue reached RMB21.9 billion (US$3.1 billion), representing a 57.9% increase compared to 2022 [1][9]. - Net income attributable to H World was RMB743 million (US$105 million) in Q4 2023, compared to a net loss of RMB124 million in Q4 2022 [23]. - For the full year, net income was RMB4.1 billion (US$575 million), recovering from a net loss of RMB1.8 billion in 2022 [24]. Operational Highlights - As of December 31, 2023, H World operated 9,394 hotels with 912,444 rooms, including 131 hotels from Legacy-DH [2][35]. - The Legacy-Huazhu segment opened 460 hotels in Q4 2023 and had 3,061 hotels in the pipeline [2][3]. - The average daily room rate (ADR) for Legacy-Huazhu was RMB284 in Q4 2023, up from RMB240 in Q4 2022 [4]. - The occupancy rate for Legacy-Huazhu hotels was 80.5% in Q4 2023, compared to 66.2% in Q4 2022 [4]. Segment Performance - Revenue from the Legacy-Huazhu segment in Q4 2023 was RMB4.4 billion, a 59.0% year-over-year increase [1][9]. - Legacy-DH segment revenue for Q4 2023 was RMB1.2 billion, a 26.6% year-over-year increase [1][9]. - Adjusted EBITDA for the full year 2023 was RMB6.9 billion (US$966 million), compared to RMB610 million in 2022 [26]. Future Guidance - For Q1 2024, H World expects revenue growth of 12%-16% compared to Q1 2023 [28]. - For the full year 2024, revenue growth is anticipated in the range of 8%-12% [28]. - The company plans to open around 1,800 hotels and close approximately 650 hotels in 2024 [28].