Investment Rating - The report assigns a "BUY" rating for the company, with a target price of HKD 39.5, indicating a potential upside from the current price of HKD 34.10 [1][7]. Core Insights - The company reported a revenue of RMB 6.96 billion for Q3 2025, representing an 8% year-on-year increase, and a net profit of RMB 1.47 billion, up 15.4% year-on-year. Adjusted EBITDA reached RMB 2.5 billion, reflecting a 19% increase [8]. - The company has shown a consistent improvement in its business operations, with a significant increase in the number of hotels and a stable RevPAR performance [12]. - The report anticipates continued growth in net profit for 2025-2027, with projections of RMB 4.31 billion, RMB 4.79 billion, and RMB 5.50 billion respectively, reflecting year-on-year growth rates of 41%, 11%, and 15% [12]. Company Overview - The company operates in the tourism and leisure industry, with a market capitalization of RMB 77.71 billion and a total share count of approximately 3,069.39 million [2]. - The company has a diversified revenue model, with 50.1% from leasing and owned properties, and 47.5% from management franchises and licensing [4]. Financial Performance - The company achieved a gross margin of 41.65% and an operating margin of 29.4% in Q3 2025, indicating improved profitability [12]. - The report highlights a decrease in the expense ratio by 2.48 percentage points year-on-year, attributed to cost control measures and operational efficiency [12]. Future Outlook - The company is expected to benefit from marginal improvements in hotel supply and continued penetration into lower-tier cities, alongside product upgrades and cost management strategies [12]. - The report suggests that RevPAR may see growth in Q4 2025, supported by the company's strategic initiatives [12].
华住集团-S（01179）：RevPAR企稳，经营延续改善业绩概要