Investment Rating - The investment rating for the company is "Outperform the Market" [1][3][20] Core Views - In Q2 2024, the company reported a revenue of 6.1 billion yuan, an increase of 11.2%, which is at the upper limit of the previous guidance of 7-11% [1][6] - The adjusted net profit for Q2 2024 grew by 17%, reaching 1.254 billion yuan, while the adjusted EBITDA was 2.04 billion yuan, up 15.1% [1][6] - The company has revised its full-year store opening guidance from 1,800 to 2,200 stores, indicating an acceleration in expansion [1][11] - The company expects Q3 2023 revenue growth to be between 2-5%, which is significantly lower than Q2 due to external environment changes and high base effects [1][17] - The company announced a shareholder return plan of up to 2 billion USD over the next three years, with a minimum annual dividend payout ratio of 60% [1][19] Summary by Sections Financial Performance - Q2 2024 revenue was 6.1 billion yuan, up 11.2% year-on-year, with domestic revenue contributing 4.83 billion yuan, also up 11.1% [1][6] - The adjusted net profit for Q2 was 1.254 billion yuan, reflecting a 16.9% increase, while the adjusted EBITDA was 2.04 billion yuan, up 15.1% [1][6] - The company’s overall adjusted EBITDA for Q2 showed a growth of 15.1%, with domestic and overseas adjusted EBITDA increasing by 14.0% and 35.1% respectively [1][6] Market Position - The company’s domestic RevPAR decreased by 2% year-on-year in Q2 2024, but it outperformed the industry average, which saw a decline of approximately 7-8% [1][11] - The company’s strong brand and operational capabilities are highlighted as key competitive advantages, especially in the face of OTA commission pressures [1][11] Expansion Plans - The company opened a record 567 new stores in Q2 2024, bringing the total number of domestic stores to 10,150, with a store reserve of 3,266 [1][11] - The revised full-year opening target of 2,200 stores reflects the company’s commitment to aggressive expansion [1][11] Future Outlook - The company anticipates a revenue growth of 2-5% for Q3 2023, which is lower than Q2 due to external factors and high base effects from the previous year [1][17] - The adjusted net profit forecasts for 2024-2026 have been revised down to 4.07 billion, 4.54 billion, and 5.16 billion yuan respectively [1][19]
华住集团-S：二季度经调整净利润增长17%，上修全年开店指引