HWORLD(HTHT) Shenwan Hongyuan Securities·2025-05-22 08:06Investment Rating - The report maintains a "Buy" rating for the company [2][6][16] Core Insights - The company reported Q1 2025 earnings that met expectations, with total revenue of 5.4 billion RMB, reflecting a year-on-year growth of 2.2% [6] - The domestic hotel segment generated revenue of 4.5 billion RMB, up 5.5% year-on-year, exceeding the previously announced guidance [6] - The company is focusing on expanding its mid-range and high-end hotel brands while maintaining a core structure of economy and mid-range hotels [6] - The overall hotel occupancy rate slightly declined due to a significant increase in supply, while overseas hotel performance improved [6] - Membership and central reservation contributions are on the rise, with the overseas segment accelerating its asset-light transformation [6] - The company has adjusted its profit forecasts for 2025-2026, expecting net profits of 4.599 billion RMB and 5.258 billion RMB respectively [6] Financial Data and Profit Forecast - Projected revenues for 2023 to 2027 are as follows: 21,882 million RMB (2023), 23,891 million RMB (2024), 24,466 million RMB (2025E), 25,434 million RMB (2026E), and 26,402 million RMB (2027E) [5][7] - The expected net profit for 2025 is 4,599 million RMB, with a growth rate of 50% year-on-year [5] - The company anticipates a gross margin improvement from 34% in 2023 to 38% in 2027 [5][7]