Investment Rating - The report maintains a "Buy" rating for the company, Huazhu Group, with a target price adjusted to HKD 28.0 and USD 35.4, reflecting potential upside of 26.7% and 27.8% respectively [2][3][5]. Core Insights - In Q2 2024, despite facing high base effects, Huazhu Group achieved revenue growth at the upper end of its guidance, with total revenue reaching RMB 6.15 billion, a year-on-year increase of 11.2% [2]. - The domestic RevPAR (Revenue per Available Room) for Huazhu Group decreased by 2% to RMB 244, but the company outperformed the market, with occupancy rates improving by 0.7 percentage points [2]. - The report highlights an increase in operational efficiency, leading to a gross margin improvement of 2.3 percentage points, despite a rise in operating expense ratios due to expansion [2]. - The company has raised its store opening guidance, achieving its strategic goal of 10,150 domestic stores, with 567 new openings in Q2 2024 [2]. - The report anticipates a slowdown in revenue growth for Q3 2024 due to higher base effects, but believes the company can still meet its revenue guidance [2]. Financial Summary - For 2024E, the company is projected to generate revenue of RMB 23.87 billion, with a year-on-year growth of 9.1% [9]. - Adjusted net profit for 2024E is estimated at RMB 3.91 billion, reflecting a slight decrease of 4.3% compared to the previous year [9]. - The report provides a detailed financial forecast, including EBITDA margins and return on equity metrics, indicating a positive trend in profitability despite market challenges [9][10].
华住集团-S：境内业务高基数下增长放缓，上调开店指引