HWORLD(HTHT) 申万宏源·2024-11-29 03:28Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong performance expectation relative to the market [7][10]. Core Insights - The company reported Q3 2024 earnings that met expectations, with a revenue of 6.4 billion yuan, reflecting a year-on-year increase of 2.4% [7]. - The company is actively expanding its hotel network while maintaining stable occupancy rates, with a domestic hotel RevPAR of 256 yuan, down 8.1% year-on-year [8]. - The company continues to penetrate lower-tier cities and has launched a new series of mid-to-high-end hotels, with a total of 10,845 operating hotels and a room count of 1.06 million [9]. - The company’s membership base has grown to 257 million, with a direct booking ratio of 64.2%, indicating increased customer loyalty [10]. - Future profit forecasts remain stable, with expected net profits of 4.087 billion, 4.555 billion, and 4.875 billion yuan for 2024, 2025, and 2026 respectively [10]. Financial Data and Earnings Forecast - Revenue projections show a steady increase from 23.347 billion yuan in 2023E to 26.345 billion yuan in 2025E, with a compound annual growth rate [6]. - The company’s gross margin is expected to stabilize around 34-35% from 2024E onwards [6][10]. - The net profit attributable to the parent company is projected to grow from 4.087 billion yuan in 2024E to 4.875 billion yuan in 2026E [10].