Investment Rating - The investment rating for the company is "Outperform the Market" [6] Core Views - The company reported steady growth in Q2, with hotel revenue reaching approximately 26.92 billion yuan, a year-on-year increase of 15.0%, and a net profit of 1.54 billion yuan, up 44.7% [1][10] - The company is strategically shifting focus from direct-operated stores to franchise operations, with franchise revenue growing by 22.8% in Q2, while direct-operated store revenue declined [2][13] - The company has adjusted its full-year RevPAR expectations downward, anticipating a low single-digit decline, while maintaining revenue growth expectations of 2%-6% [4][15] Summary by Sections Financial Performance - Q2 revenue was 6.43 billion yuan, a 4.5% increase year-on-year, with adjusted net profit at 1.35 billion yuan, up 7.6% [1][10] - The adjusted EBITDA grew by 11.3% year-on-year [1] - The company’s total hotel operating revenue for Q2 was approximately 26.92 billion yuan, with a significant contribution from Huazhu China [10] Business Strategy - The company is focusing on franchise business growth, with franchise room numbers increasing by 20.0% year-on-year, while direct-operated store revenue and profit declined [2][13] - The company is strategically reducing the number of direct-operated stores while optimizing existing store profitability through rent agreements and efficiency improvements [2] Market Trends - The mixed RevPAR for Huazhu China in Q2 was 235 yuan, a decrease of 3.8% year-on-year, with same-store RevPAR down 7.9% [3][14] - The company is actively renovating older stores and launching new brands to adapt to market changes, with a focus on high-quality hotel development [3][14] Future Outlook - The company has revised its full-year RevPAR forecast to a low single-digit decline, reflecting ongoing market uncertainties [4][15] - The company plans to enhance its membership program, which has grown to 288 million members, contributing significantly to revenue [4][15] - The company has announced a semi-annual dividend policy totaling 250 million USD, reflecting strong shareholder returns [4][15]
华住集团-S（01179）：二季度业绩稳健增长，巩固轻资产战略与高质量扩张