Core Viewpoint - The company reported stable revenue growth and a significant increase in net profit for Q2 2025, driven by its hotel operations and strategic focus on franchise business expansion [1][2][4] Group 1: Financial Performance - Q2 hotel revenue reached approximately 26.92 billion yuan, a year-on-year increase of 15.0%, with Huazhu China growing by 15.6% [1] - Q2 revenue was 6.43 billion yuan, up 4.5% year-on-year, aligning closely with the previous guidance of 1-5% [1] - Net profit attributable to shareholders was 1.54 billion yuan, a year-on-year increase of 44.7%, aided by foreign exchange gains from euro appreciation [1] - Adjusted net profit was 1.35 billion yuan, reflecting a 7.6% year-on-year growth, while adjusted EBITDA grew by 11.3% [1] Group 2: Business Strategy and Operations - The company is focusing on franchise business growth, with franchise revenue increasing by 22.8% in Q2, while the number of franchise rooms grew by 20.0% year-on-year [2] - Total operating profit from franchise operations rose by 23.2%, contributing 64% to the overall profit, an increase of 7 percentage points [2] - The company is strategically reducing the number of direct-operated stores, which saw a revenue decline of 7.6% and an operating profit drop of 13.4% [2] Group 3: Market Trends and Future Outlook - Q2 mixed RevPAR for Huazhu China was 235 yuan, down 3.8% year-on-year, with same-store RevPAR decreasing by 7.9% [3] - The company is actively renovating older stores and launching new brands, with a focus on high-quality hotel development [3] - The company has adjusted its full-year RevPAR expectations to a low single-digit decline, while maintaining revenue growth projections of 2%-6% [4] - The company has approved a semi-annual dividend policy totaling 250 million USD, alongside share buybacks, representing 92% of the net profit for the first half of the year [4]
华住集团-S(01179.HK)：二季度业绩稳健增长 巩固轻资产战略与高质量扩张