Investment Rating - The report assigns a "Buy" rating to the company with a target price of HKD 33.5, indicating a potential upside from the current price of HKD 28.70 [1][2]. Core Insights - The company reported Q1 2025 revenue of RMB 5.4 billion, a year-on-year increase of 2.2%, and a net profit of RMB 890 million, up 35.7% year-on-year. Adjusted EBITDA was RMB 1.5 billion, reflecting a 5.3% increase [7]. - The company is focusing on a light-asset strategy, with rental and owned income accounting for 51.7% of total revenue, while management franchise and licensing contributed 46.3% [3][7]. - The overall hotel count reached 11,685, with 11,564 under the main brand and 121 under the DH division, indicating a net addition of 539 hotels in the reporting period [7]. - The gross margin improved by 0.74 percentage points to 33.2%, driven by the light-asset strategy, while the expense ratio decreased by 0.72 percentage points to 14.46% [7]. - The report anticipates a gradual improvement in RevPAR as the peak season approaches, despite short-term pressures from competition and economic factors [7]. Financial Summary - The company is projected to achieve net profits of RMB 3.68 billion, RMB 4.22 billion, and RMB 4.84 billion for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 20.6%, 15%, and 14.6% [9]. - Earnings per share (EPS) are expected to be RMB 1.20, RMB 1.38, and RMB 1.58 for the same years, with corresponding price-to-earnings (P/E) ratios of 22x, 19x, and 17x, indicating reasonable valuation [9][12]. - The total revenue is forecasted to grow from RMB 25.15 billion in 2025 to RMB 29.85 billion by 2027, reflecting a steady upward trend [12].
华住集团-S（01179）：25Q1业绩符合预期，成本费用持续优化