Hotel Network Expansion - The company expanded its hotel network from 7,830 hotels as of December 31, 2021, to 9,394 hotels as of December 31, 2023, with a compound annual growth rate of 9.5%[3] - As of December 31, 2023, the company operated 9,394 hotels, including 691 leased and owned hotels and 8,703 managed and franchised hotels, totaling 912,444 hotel rooms[3] - The company is developing an additional 3,098 new hotels, including 30 leased and owned hotels and 3,068 managed and franchised hotels as of December 31, 2023[3] - The company's hotel network covers 9,394 hotels across 31 provinces, autonomous regions, and municipalities in Greater China and 18 other countries, with 3,098 hotels under development as of December 31, 2023[33] - The company operates 47 managed and franchised hotels through Deutsche Hospitality and 8,656 managed and franchised hotels through other entities[35] - The company has 991 cities across 29 provinces and municipalities with operating hotels, and 889 cities across 30 provinces and municipalities (including Taiwan) with hotels under development[35] - The company has 30 leased and owned hotels under development, with 25 in the pre-conversion phase and 5 in the conversion phase, with a total budgeted development cost of RMB 147 million (USD 21 million)[36] - The company has 683 leased hotels and 8 owned hotels, accounting for approximately 7.4% of its operating hotels[38] - The company has 8,526 managed hotels and 177 franchised hotels, accounting for approximately 91% and 2% of its operating hotels, respectively[40] Membership and Direct Sales - The company's membership program, Huazhu Club, had over 228 million members as of December 31, 2023, with 73% of room nights sold to individual or corporate members in 2023[3] - In 2023, 78% of room nights were sold through the company's direct sales channels[3] - The company's loyalty program, Huazhu Club, had over 228 million members as of December 31, 2023, and 73% of Legacy Huazhu's room nights were sold to Huazhu Club members in 2023[58] - Legacy Huzahu had 78% of room nights sold through the company's own sales channels, with the remaining 22% sold through intermediaries in 2023[58] Financial Performance - The company's total revenue for 2021, 2022, and 2023 was RMB 12,785 million, RMB 13,862 million, and RMB 21,882 million (USD 3,082 million), respectively[4] - The company reported a net loss attributable to Huazhu Group Limited of RMB 465 million in 2021 and RMB 1,821 million in 2022, but achieved a net profit of RMB 4,085 million (USD 575 million) in 2023[4] - Adjusted EBITDA (non-GAAP) for 2021, 2022, and 2023 was RMB 1,571 million, RMB 610 million, and RMB 6,874 million (USD 966 million), respectively[4] - Net cash generated from operating activities for 2021, 2022, and 2023 was RMB 1,342 million, RMB 1,564 million, and RMB 7,674 million (USD 1,080 million), respectively[4] - Total revenue increased from RMB 12,785 million in 2021 to RMB 21,882 million (USD 3,082 million) in 2023, with net profit attributable to the company reaching RMB 4,085 million (USD 575 million) in 2023[118] - Adjusted EBITDA (non-GAAP) rose from RMB 1,571 million in 2021 to RMB 6,874 million (USD 966 million) in 2023, with net cash generated from operating activities increasing from RMB 1,342 million in 2021 to RMB 7,674 million (USD 1,080 million) in 2023[118] - Total revenue increased by 57.9% from RMB 13,862 million in 2022 to RMB 21,882 million (USD 3,082 million) in 2023, driven by recovery from COVID-19 and increased occupancy rates[154] - Revenue from leased and owned hotels grew by 50.8% from RMB 9,148 million in 2022 to RMB 13,796 million (USD 1,943 million) in 2023[154] - Revenue from managed and franchised hotels surged by 74.7% from RMB 4,405 million in 2022 to RMB 7,694 million (USD 1,084 million) in 2023[154] - Other income increased by 26.9% from RMB 309 million in 2022 to RMB 392 million (USD 55 million) in 2023[154] - Total operating costs and expenses rose by 19.5% from RMB 14,705 million in 2022 to RMB 17,568 million (USD 2,476 million) in 2023[154] - Hotel operating costs increased by 17.0% from RMB 12,260 million in 2022 to RMB 14,341 million (USD 2,021 million) in 2023, primarily due to higher employee costs and consumables[154] - Adjusted EBITDA for Legacy Huazhu increased significantly from RMB 725 million in 2022 to RMB 6,772 million in 2023, while Legacy DH improved from a loss of RMB 112 million to a profit of RMB 103 million[153] - Net loss attributable to Huazhu Group Limited was RMB 1,821 million in 2022, improving to a net profit of RMB 4,085 million (USD 575 million) in 2023[150] - Sales and marketing expenses increased by 74.9% from RMB 613 million in 2022 to RMB 1,072 million (USD 151 million) in 2023, primarily due to higher commissions and promotional fees related to business recovery[155] - General and administrative expenses increased by 24.5% from RMB 1,675 million in 2022 to RMB 2,086 million (USD 294 million) in 2023, mainly due to rising employee costs as business recovered[155] - Pre-opening expenses decreased by 63.2% from RMB 95 million in 2022 to RMB 35 million (USD 5 million) in 2023, due to more selective opening of leased and owned hotels[155] - Operating profit in 2023 was RMB 4,714 million (USD 662 million), compared to an operating loss of RMB 294 million in 2022[155] - Net interest expense in 2023 was RMB 137 million (USD 19 million), with interest income of RMB 248 million (USD 35 million) and interest expense of RMB 385 million (USD 54 million)[155] - Other net profit in 2023 was RMB 573 million (USD 81 million), compared to RMB 10 million in 2022, mainly due to gains from the sale of Accor shares[156] - Legacy Huazhu's total revenue in 2023 increased by 63.6% to RMB 17,444 million, driven by the recovery of the Chinese business from COVID-19[157] - Legacy DH's total revenue in 2023 increased by 39.0% to RMB 4,465 million, driven by the continued recovery of the European business[157] - Legacy Huazhu's adjusted EBITDA in 2023 was RMB 6,772 million, a significant increase from RMB 725 million in 2022, due to the recovery of the Chinese business[158] - Legacy DH's adjusted EBITDA in 2023 improved to RMB 103 million from a negative RMB 112 million in 2022, due to the recovery of the European business[158] - Sales and marketing expenses decreased by 4.4% from RMB 641 million in 2021 to RMB 613 million in 2022, with the expense ratio dropping from 5.0% to 4.4% of total revenue[160] - General and administrative expenses increased by 8.4% from RMB 1,545 million in 2021 to RMB 1,675 million in 2022, maintaining a stable ratio of 12.1% of total revenue[160] - Pre-opening expenses increased by 17.3% from RMB 81 million in 2021 to RMB 95 million in 2022, with the expense ratio rising from 0.6% to 0.7% of total revenue[160] - Operating loss of RMB 294 million in 2022, compared to an operating profit of RMB 164 million in 2021[160] - Net interest expense of RMB 322 million in 2022, with interest income of RMB 87 million and interest expense of RMB 409 million[160] - Other net profit decreased significantly from RMB 157 million in 2021 to RMB 10 million in 2022, primarily due to the sale of Accor shares in 2021[161] - Foreign exchange loss increased from RMB 317 million in 2021 to RMB 641 million in 2022, mainly due to the depreciation of the euro[162] - Legacy Huazhu's total revenue decreased by 5.2% from RMB 11,247 million in 2021 to RMB 10,661 million in 2022, while Legacy DH's revenue surged due to the recovery of European business[162] - Adjusted EBITDA for Legacy Huazhu decreased by 64.3% from RMB 2,032 million in 2021 to RMB 725 million in 2022, while Legacy DH's adjusted EBITDA improved significantly[162] Hotel Brands and Development - The company operates over 20 distinctive hotel brands, targeting various market segments from economy to luxury[5] - HanTing Hotel has 3,598 operating hotels and 731 under development as of December 31, 2023[7] - Hello Inn has 269 operating hotels and 177 under development as of December 31, 2023[8] - Hanting Express has 471 operating hotels and 180 under development as of December 31, 2023[9] - Elan Hotel has 404 operating hotels and 1 under development as of December 31, 2023[10] - Ibis Hotel has 226 operating hotels and 17 under development as of December 31, 2023[11] - Zleep Hotels has 16 operating hotels and 15 under development as of December 31, 2023[12] - Ji Hotel has 2,116 operating hotels and 936 under development as of December 31, 2023[13] - Orange Hotel has 652 operating hotels and 315 under development as of December 31, 2023[14] - Starway Hotel has 670 operating hotels and 228 under development as of December 31, 2023[15] - IntercityHotel has 63 operating hotels and 64 under development as of December 31, 2023[18] - CitiGO hotels have 35 operating hotels and 4 under development as of December 31, 2023[23] - Meilun Meihuan hotels have 9 operating hotels (including 4 in China) and 2 under development in China as of December 31, 2023[24] - Xiyue hotels have 7 operating hotels as of December 31, 2023[25] - Huajiantang hotels have 63 operating hotels and 56 under development as of December 31, 2023[26] - Steigenberger hotels have 54 operating hotels (including 11 in China) and 10 under development (including 3 in China) as of December 31, 2023[27] - Jaz in the City hotels have 3 operating hotels and 1 under development as of December 31, 2023[28] - Mercure hotels have 10 operating hotels and 2 under development as of December 31, 2023[29] - Steigenberger Grand hotels have 9 operating hotels (including 3 in China) and 2 under development (including 1 in China) as of December 31, 2023[30] - Songpin hotels have 7 operating hotels as of December 31, 2023[31] Franchise and Management Fees - The company charges franchisees an initial franchise fee ranging from RMB 80,000 to RMB 1,000,000 per hotel and a monthly franchise fee of approximately 3% to 6.5% of total revenue generated by each managed hotel[41] - Deutsche Hospitality's management fees for franchised hotels range from 0.5% to 3.5% of hotel revenue and 6% to 10% of adjusted total operating profit[42] - Deutsche Hospitality charges a licensing fee of 0.5% to 2% of revenue for certain overseas franchised hotels[42] - Legacy Huazhu's franchise agreements typically have an initial term of 8 to 10 years, extendable upon mutual agreement[43] - Deutsche Hospitality's franchise fees for franchised hotels range from 0.5% to 4.0% of total room revenue or turnover, with fixed fees of €40,000 to €150,000 annually for some overseas hotels[44] - For Legacy Huazhu managed hotels, franchisees typically pay an upfront franchise fee ranging from RMB 80,000 to RMB 1,000,000 per hotel[138] - Monthly franchise fees for Legacy Huazhu managed hotels range from 3% to 6.5% of total revenue generated by each hotel[138] - For Deutsche Hospitality managed hotels, franchisees pay a base fee of 0.5% to 3.5% of hotel turnover and an incentive fee of 6% to 10% of adjusted total operating profit[138] - Franchise fees for Deutsche Hospitality franchised hotels range from 0.5% to 4.0% of total room revenue or turnover and total operating income[139] - Initial terms for franchise agreements are typically 8-10 years for Legacy Huazhu hotels and 15-20 years for Deutsche Hospitality hotels[137] Technology and Digital Systems - The company's cloud-based property management system enables real-time monitoring of occupancy rates, average daily rates (ADR), and revenue per available room (RevPAR) for each hotel[50] - The company's global unified digital core platform integrates 20+ distribution platforms, including OTAs, GDS, and TMCs, achieving 100% direct connectivity across all countries, brands, and hotels[51] - The company's central revenue management system (RMS) uses AI and algorithms to automatically adjust room rates across the network within minutes, optimizing occupancy and revenue[52] - The company's central procurement system (CPS) is one of the largest IoT-based procurement platforms in China's hospitality industry, enabling bulk purchasing for all hotels in the network[53] - The company's integrated CRM system tracks member data, including booking history, points accumulation, and prepaid balances, to enhance customer loyalty and targeted promotions[52] - The company's hotel operation system platform (H-HOS) integrates PMS, POS, and EMS, covering brands in China and expanding to markets like Singapore, Germany, and Denmark[51] - The company's global unified collaboration platform (H-TONE) supports real-time multilingual communication, deployed across multiple countries in Asia-Pacific and Europe[51] - Cloud-PMS system enables real-time management of room inventory, reservations, and pricing, optimizing occupancy rates, ADR, and RevPAR[54] - "Easy" series digital systems, including "Easy Room" and "Easy Invoice," streamline hotel operations and reduce check-out to check-in time[54] - Self-service check-in/out terminals replace traditional manual processes with advanced automation[54] - Digital payment options include online credit card payments, Alipay, WeChat Pay, and Apple Pay[54] - Smart robots deployed across hotels improve operational efficiency and guest experience[54] - AI-powered voice assistant enhances guest interaction and experience through mobile app integration[55] - Smart room features like "Hello Huazhu" enable voice control of lights, TV, AC, and curtains[55] - Free Wi-Fi offered to all hotel guests since 2013, significantly boosting customer growth[55] - Data security measures include ISO27001 and ISO27701 certifications, PCI-DSS compliance, and a dedicated data security committee[56] - Annual vulnerability scans and 7*24 emergency response strategies ensure continuous data security compliance[57] Environmental and Sustainability Initiatives - Over 30% of the company's leased and owned hotel properties are equipped with air source heat pumps, and nearly 10% have adopted solar hot water systems[63] - Approximately 70 Legacy DH properties have obtained ISO50001 energy management system certification, and around 90 properties have achieved ISO14001 environmental management system certification[63] - The company launched the "Stay Longer, Skip Laundry" initiative in November 2023, offering additional membership points to guests who opt out of changing bed linens during extended stays[63] - The "Smart Linen Project" was initiated in 2023 to establish a digital management solution for linen processing, aiming to improve efficiency and extend linen lifespan[64] - The company has integrated environmental standards into supplier selection processes, particularly for laundry suppliers, emphasizing water and energy-saving capabilities[64] - The company's "Easy Energy Consumption" system monitors electricity and water usage, providing real-time alerts for anomalies to prevent resource waste[63] - The company introduced eco-friendly products in 2023, including straw-based toothbrushes, cornstarch shower caps, and bamboo paper[63] - The company encourages customers to opt for electronic invoices to enhance operational efficiency and reduce paper usage[63] - The company is actively exploring rainwater and greywater reuse methods to conserve water resources[63] - The company is working to expand the use of renewable energy equipment across its hotel network through collaboration with franchisees[63] Legal and Regulatory Compliance - Special construction projects (e.g., hotels with a total construction area exceeding 10,000 square meters) must pass fire safety inspections and approvals before operation, with penalties ranging from RMB 30,000 to RMB 300,000 for non-compliance[68] - Hotels providing entertainment facilities (e.g., discos, karaoke, or dance halls) must obtain an entertainment business license[68] - Hotels eligible for star ratings must apply for assessments, with ratings valid for three years[69] - Single-purpose commercial prepaid cards issued by hotels must not exceed 40% of the previous fiscal year's main business revenue[69] - Online tourism platforms must verify the identity, licenses, and credit ratings of registered tourism operators and protect tourists' personal data privacy[70] - Foreign-invested travel agencies in Shanghai and Chongqing are temporarily allowed to provide outbound travel services for mainland

Financial Regulations and Compliance - As of December 31, 2023, a total of RMB1,029 million (US$145 million) was not distributable in the form of dividends due to PRC regulations[193] - The share capital of PRC subsidiaries amounted to RMB2,809 million (US$396 million) as of December 31, 2023, which is considered restricted[193] - Current PRC laws permit subsidiaries to pay dividends only out of accumulated profits, which are determined according to PRC accounting standards[193] - PRC regulations may limit the ability to inject capital into PRC subsidiaries and restrict profit distribution[189] - The company is subject to PRC withholding tax on dividends if treated as a PRC resident enterprise, which could be 10% for non-PRC resident enterprises[202] - If classified as a PRC resident enterprise, the company may be subject to a 25% PRC income tax on worldwide income[205] - The company must comply with foreign exchange regulations for any offshore funds used to finance PRC entities[197] - The ability to make loans or additional capital contributions to PRC subsidiaries is subject to PRC regulatory requirements, which may delay or prevent such actions[196] Audit and Regulatory Risks - The SEC identified the company as a "Commission-Identified Issuer" on May 26, 2022, which may lead to trading prohibitions if audit reports are not compliant for two consecutive years[208] - The PCAOB announced on December 15, 2022, that it can inspect and investigate audit firms in mainland China and Hong Kong, which affects the company's status under the HFCA Act for fiscal years 2022 and 2023[209] - The PCAOB's ability to inspect audit firms is contingent on the cooperation of PRC authorities, and any obstruction could lead to new determinations affecting the company's trading status[209] Operational Structure and Control - The company operates primarily through subsidiaries in China and Europe, and its financial results are consolidated under U.S. GAAP despite not holding direct equity interests in its operating entities[221] - The contractual arrangements with the Consolidated Affiliated Entities may not provide as effective control as direct ownership, potentially impacting operational control[218] - The company relies on nominee shareholders for the Consolidated Affiliated Entities, which may lead to conflicts of interest that could adversely affect business operations and financial condition[225] - The company may face substantial costs and limitations if it exercises the option to acquire equity ownership of the Consolidated Affiliated Entities, including potential tax liabilities[223] - The current industry entry clearance requirements for foreign investment in the PRC include a Negative List where foreign stakes in certain sectors are restricted, impacting the company's operations[213] - The company’s ability to enforce contractual arrangements in China may be limited due to uncertainties in the legal framework, which could affect control over the Consolidated Affiliated Entities[222] Market and Trading Dynamics - The company’s listing in Hong Kong may not provide sufficient liquidity, and trading prohibitions could impair the ability to sell or purchase ADSs[208] - The market price for the company's ADSs has been volatile, ranging from a low of US$33.03 to a high of US$52.49 on the NASDAQ in 2023[233] - The ordinary shares on the Hong Kong Stock Exchange experienced a high of HK$41.45 and a low of HK$25.9 in 2023[233] - The trading market for the company's ordinary shares on the Hong Kong Stock Exchange may not be sustained, affecting liquidity and market price[237] Financial Performance and Projections - In 2023, the company recorded operating income of RMB4,714 million and net income attributable to H World Group Limited of RMB4,085 million (US$575 million) after experiencing significant operating losses in 2021 (RMB465 million) and 2022 (RMB1,821 million) due to COVID-19[245] - The company anticipates that its current cash and cash equivalents, along with expected cash flow from operations, will be sufficient to meet working capital needs for at least the next 12 months[243] - The company may require additional cash resources for strategic acquisitions or expansions, which could lead to the sale of additional equity or debt securities[243] - The volatility in market prices may be influenced by factors such as quarterly operating results, changes in financial estimates, and conditions in the travel and lodging industries[234] Shareholder and Corporate Governance - The founder and co-founders collectively owned approximately 31.3% of the outstanding ordinary shares as of March 31, 2024, which may lead to conflicts of interest and influence over significant corporate actions[250] - The company's articles of association contain anti-takeover provisions that could limit opportunities for shareholders to sell their shares at a premium[268] - The board of directors has the authority to issue preferred shares, which could adversely affect the rights of ordinary shareholders and the market price of ADSs[269] Business Expansion and Development - The hotel network expanded from 7,830 hotels as of December 31, 2021, to 9,394 hotels as of December 31, 2023, representing a CAGR of 9.5%[293] - As of December 31, 2023, the company had 912,444 hotel rooms across its 9,394 hotels, with an additional 3,098 hotels under development[293] - The company completed the acquisition of CitiGO in May 2021, expanding its hotel brand portfolio[291] - The company operates a multi-brand strategy with over 20 distinct hotel brands targeting various market segments[294] - The company has a pipeline of 3,098 hotels under development, which includes leased, owned, manachised, and franchised hotels[328] Technology and Innovation - The proprietary technology infrastructure supports operational efficiency and enhances customer experience, contributing to the company's growth[296] - The company has developed the first in-house large-scale fully automated revenue management system in China's hotel industry, which adjusts room rates based on real-time demand forecasts[363] - The centralized procurement system has enabled the company to efficiently manage operating costs and facilitate bulk purchases across its hotel network[364] - The company has implemented a cloud-based property management system that optimizes hotel occupancy rates and revenues generated per available room[365] - The company has deployed smart robots across its hotels to enhance operational efficiency and guest experience[368] Sustainability and Compliance - The company promotes sustainability through modular construction, reducing construction waste and improving quality control[385] - By the end of 2023, over 30% of the company's leased and owned hotel properties were equipped with air source heat pumps, and nearly 10% had adopted solar water heating systems[385] Legal and Administrative Matters - As of December 31, 2023, the company had several pending legal and administrative proceedings, including lease contract disputes and labor disputes, with no accrued contingencies remaining[383] - There are significant legal obstacles in China that may hinder the pursuit of shareholder claims or regulatory investigations common in the U.S.[278] - The time required for the exchange between ordinary shares and ADSs may be longer than expected, affecting investors' ability to settle or effect sales[282] Customer Engagement and Loyalty - The H Rewards loyalty program surpassed 228 million members as of December 31, 2023, with approximately 73% of room nights sold to H Rewards members in 2023[295] - In 2023, approximately 78% of room nights were sold through the company's own sales channels, while 22% were sold through intermediaries[375] Insurance and Risk Management - The company has adequate property and liability insurance policies, but cannot guarantee franchisee compliance, which may expose it to significant financial risks[382]

Investment Rating - Maintain "Recommend" rating [1][2] Core Views - The company achieved a significant turnaround in 2023, with revenue reaching 21.9 billion yuan, a 57.9% YoY increase, and net profit attributable to the parent company of 4.085 billion yuan, compared to a loss of 1.8 billion yuan in 2022 [1] - RevPAR exceeded 2019 levels, driven by ADR growth, with Huazhu-branded hotels achieving a 229 yuan RevPAR in Q4 2023, up 43.8% YoY and 20.0% compared to 2019 [1] - Steady expansion with 460 new openings in Q4 2023, bringing the total number of operating hotels to 9,394 globally, with a strong pipeline of 3,061 hotels [1] - The company is leveraging its competitive advantages in product structure, brand effectiveness, and membership systems, with operational cost reductions and efficiency improvements driving high performance elasticity [1] - Expected net profit attributable to the parent company for 2024-2026 is 4.389 billion, 4.955 billion, and 5.399 billion yuan, respectively, with corresponding P/E ratios of 24x, 21x, and 19x [1][2] Financial Performance - 2023 revenue: 21.882 billion yuan, +57.9% YoY [2] - 2023 net profit attributable to parent: 4.085 billion yuan, +324.3% YoY [2] - 2023 EPS: 1.25 yuan, with a P/E ratio of 25x [2] - 2024E revenue: 23.396 billion yuan, +6.9% YoY [2] - 2024E net profit attributable to parent: 4.389 billion yuan, +7.5% YoY [2] - 2024E EPS: 1.34 yuan, with a P/E ratio of 24x [2] Operational Metrics - Huazhu-branded hotels: Q4 2023 RevPAR of 229 yuan, +43.8% YoY, +20.0% vs 2019; ADR of 284 yuan, +18.3% YoY, +22.5% vs 2019; OCC of 80.5%, +14.3pct YoY, -1.7pct vs 2019 [1] - Deutsche Hospitality: Q4 2023 RevPAR of 73 euros, +1.3% YoY, +10.6% vs 2019; ADR of 115 euros, -5.9% YoY, +18.6% vs 2019; OCC of 63.8%, +4.5pct YoY, -4.2pct vs 2019 [1] - Total operating hotels: 9,394 globally, with 9,263 Huazhu-branded hotels and 131 Deutsche Hospitality hotels [1] - Pipeline: 3,061 hotels, including 1,121 economy, 1,503 mid-scale, 397 upper mid-scale, and 69 upscale hotels [1] Strategic Focus - Continued focus on mid-to-high-end brand expansion, with Han Ting and Quan Ji hotels growing by 10.5% and 24.9% YoY, respectively [1] - Emphasis on high-quality lean growth, with ongoing optimization of hotel quality and development [1] - Integration of membership and supply chain platforms to further enhance operational efficiency and performance [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Views - The company's performance in Q4 2023 met expectations, with a significant revenue increase of 50.7% year-on-year, reaching 5.585 billion yuan. Domestic revenue grew by 59.0%, driven by both direct and managed hotel segments [1][7] - The company continues to enhance its operational quality, as evidenced by a return to profitability with a net profit of 743 million yuan in Q4 2023, compared to a loss of 124 million yuan in the same period last year [1][7] - The company has exceeded its annual store opening targets, with a net increase of 852 stores in 2023, showcasing its strong expansion capabilities [3][7] Summary by Sections Financial Performance - In Q4 2023, the company achieved a revenue of 5.585 billion yuan, with domestic revenue contributing 4.384 billion yuan. The direct hotel segment accounted for 52.2% of total revenue, while managed and franchised hotels contributed 47.8% [1] - The company's Q4 2023 RevPAR (Revenue per Available Room) for domestic hotels was 229 yuan, reflecting a year-on-year increase of 43.8% compared to Q4 2022 and 19.9% compared to Q4 2019 [2] - The company provided revenue guidance for Q1 2024, expecting a year-on-year growth of 12%-16% [7] Expansion and Pipeline - The company opened 460 new hotels in Q4 2023, with a net increase of 235 hotels, surpassing its initial target of 1,400 openings for the year [3] - The pipeline for future openings stands at 3,061 hotels, indicating continued expansion plans and a strong market position [3] Financial Projections - The company forecasts net profits of 4.349 billion yuan for 2024, with a projected P/E ratio of 20.6x [8] - Expected revenue growth rates for the next few years are 4.8% in 2024, 7.8% in 2025, and 7.8% in 2026 [8]

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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 ...