Investment Rating - The report maintains a "Buy" rating for the company [5][6] Core Insights - The company reported third-quarter earnings that exceeded expectations, with a revenue of RMB 7 billion, representing a year-on-year increase of 8.1%, surpassing the previous guidance of 2%-6% [5] - The company continues to expand its mid-to-high-end brand strategy, launching a new brand "Quanjidaguang" [5] - The light-asset model is driving rapid expansion and improving profitability, with a significant increase in revenue from management franchise and licensing, which grew by 27.2% year-on-year to RMB 3.3 billion [5] Financial Data and Earnings Forecast - Revenue projections for the company 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 attributable to the parent company is forecasted as: - 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 [5][6] - The company’s gross margin is expected to improve from 34% in 2023 to 41% by 2027 [5][6] Market Data - The company's closing price is USD 45.22, with a market capitalization of USD 1.38 billion [3] - The company has a total of 12,702 hotels in operation globally, with 124.6 million rooms [5]

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]

Core Viewpoint - H World Group (华住) shows stable stock performance with a recent closing price of $45.22, reflecting a slight increase of 0.62% on November 18, 2023, and a year-to-date increase of 44.7% [1] Financial Performance - The trading volume on November 18 was 1.7747 million shares, with a total transaction value of $78.9539 million, which is a decrease of 45.65% compared to the previous trading day [1] - Over the past 5 trading days, the stock has seen a cumulative increase of 0.04%, while the increase over the past 60 days is 29.79% [1] Institutional Ratings - Institutional sentiment towards H World Group remains positive, with Zacks Research and HSBC Global Research recently assigning a "Strong Buy" rating [1] Strategic Developments - The launch of the new brand "Qianji Daguan" on October 31 is a significant strategic move for H World Group, aimed at enhancing its position in the hotel supply-side reform [1] - The founder, Ji Qi, highlighted favorable factors such as a large population base and substantial infrastructure development, which are expected to create growth opportunities for the hotel industry, thereby boosting confidence in the development of "Qianji Daguan" [1] - This new brand is anticipated to become a key growth driver for H World Group in the next phase of its development [1]

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]

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]

其中加盟业务受益于公司供应链整合能力的增强，加盟商签约强劲，同比增长 27.2%，环比二季度再次提速，占集团营收的比例同比提升 7.1pct 达到 47.5%。直营业务同比下滑 5.5%，核心问题在于老旧酒店（尤其是高线市场）竞争力不足。 4、轻资产转型带动盈利能力持续提升。由于公司轻资产战略的持续推进，抵消了客单价下滑对毛利端的拖累，整体毛利率保持平稳。（加盟模式节省租 金、人力等刚性成本，毛利率更高）。 费用端，为了支撑新店的推广和会员体系的运营，三季度华住加大了营销费用的投放，但伴随公司数字化带来的经营效率的提升，管理费用率大幅下降， 最终，华住调整后 EBITDA 达到 25.1 亿元，同比增长 18%，超出市场一致预期（23.4 亿元）。 5、四季度指引增长 2%-6%。公司指引四季度总收入同比增长 2%-6%，如果剔除 DH 业务，核心业务增速同比增长 3%-7%，结合公司电话会信息，考虑 到三季度 RevPAR 全面企稳，公司管理层对四季度呈谨慎乐观态度。 北京时间 2025 年 11 月 17 日美股盘前，华住发布了 2025 年 3 季度财报，伴随休闲旅游需求的旺盛以及公司的轻资产转型战略的 ...

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 Points - U.S. stock futures are lower, with Dow futures down approximately 200 points [1] - Helmerich and Payne Inc reported a fourth-quarter loss of 1 cent per share, with quarterly sales of $1.012 billion, exceeding analyst expectations of $973.678 million [1] - Helmerich and Payne shares fell 7% to $25.69 in pre-market trading [1] Company Movements - Alpha Technology Group Ltd shares decreased by 19% to $17.50 after a significant surge of 132% on Monday [4] - Invivyd Inc shares fell 13.4% to $2.46 following the announcement of a $125 million public offering [4] - Nice Ltd shares dropped 7.3% to $112.00 after a 9% decline on the previous day [4] - H World Group Ltd shares fell 6.7% to $41.95 despite reporting better-than-expected third-quarter results [4] - Fulcrum Therapeutics Inc shares decreased by 6.6% to $9.01 after a 12% gain on Monday [4] - Rocket Pharmaceuticals Inc shares declined 6% to $2.86 [4] - OBOOK Holdings Inc shares fell 5.6% to $7.53 [4] - Iperionx Ltd shares decreased by 5% to $33.00 [4] - Home Depot Inc shares slipped 2% to $351.01 after reporting worse-than-expected third-quarter adjusted EPS and lowering FY25 adjusted EPS outlook [4]

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]