Investment Rating - The investment rating for the company is "Buy" [2][3] Core Views - In Q1 2024, the company's revenue exceeded previous guidance, with adjusted net profit doubling. Revenue reached 5.278 billion RMB, up 17.80%, surpassing the guidance of 12-16%. Adjusted net profit was 659 million RMB, a year-on-year increase of approximately 101% [6][9] - The domestic hotel sector's overall REVPAR increased by 3.1%, leading the industry, with rapid store openings contributing to revenue and adjusted profit growth. The company opened a record 569 new stores in Q1 2024, reflecting strong franchisee recognition [6][9] - The company expects Q2 revenue growth of 7-11%, supported by strong brand and operational efficiency, despite potential fluctuations in REVPAR due to high base effects from the previous year [6][9] Summary by Sections Financial Performance - In Q1 2024, the company achieved a revenue of 5.278 billion RMB, a 17.80% increase, and an adjusted net profit of 771 million RMB, marking a 101% year-on-year growth. The decline in net profit was primarily due to foreign exchange fluctuations and previous investment gains [6][9] - The domestic hotel revenue was approximately 4.2 billion RMB, up 18.1%, exceeding the guidance of 11-15%. Adjusted EBITDA and net profit were 1.487 billion RMB and 945 million RMB, respectively, reflecting year-on-year increases of about 32% and 72% [6][9] Market Position - The company leads the domestic hotel industry with a REVPAR increase of 3.1%, outperforming competitors. The overall performance is attributed to timely product updates and efficient operational management [6][9] - The company has a total of 9,817 hotels and 955,657 rooms as of Q1 2024, with a significant portion being franchise-operated [6][9] Future Outlook - The company anticipates a stable revenue growth of 7-11% in Q2 2024, with an annual growth forecast of 8-12%. The growth is supported by ongoing product upgrades and expansion plans, including the opening of 1,800 new stores in 2024 [6][9] - Long-term growth prospects remain strong, with the company positioned as a leader in the Chinese hotel industry, expected to deliver stable growth and capital returns [6][9]
华住集团-S：一季度经调整净利润翻倍，强品牌高效率助长期成长