Investment Rating - The report maintains an "Accumulate" rating for Huazhu Group-S (1179.HK) with a market price of HKD 30.7 [1]. Core Views - Huazhu's Q1 performance slightly exceeded expectations, benefiting from improvements in product strength due to direct store renovations and enhanced revenue management capabilities. The company continues to lead its competitors in management and product selection, resulting in a sustained increase in market share. The current valuation does not fully reflect the company's intrinsic value [5]. - The profit forecast for Huazhu has been raised, maintaining the "Accumulate" rating. In Q1 2024, despite the industry facing growth pressures from high base effects, Huazhu's core operating metrics showed steady growth. The company is expected to achieve or exceed its performance targets, leading to an upward revision of net profit forecasts for 2024-2025 [5]. Financial Performance Summary - For Q1 2024, Huazhu reported revenue of CNY 5.28 billion, a year-on-year increase of 17.8%. The net profit attributable to shareholders was CNY 660 million, a decrease of 33.4% compared to Q1 2023 [5]. - The domestic hotel segment (Legacy-Huazhu) generated revenue of CNY 4.23 billion, up 17.6% year-on-year, with a net profit of approximately CNY 830 million, down 30.6% [5]. - The overseas hotel segment (Legacy-DH) reported revenue of CNY 1.03 billion, a year-on-year increase of 16.6%, with a net loss of CNY 170 million [5]. Growth and Expansion - The company opened 569 new stores and closed 148 in Q1 2024, resulting in a net increase of 421 stores. The number of signed contracts reached 647, with a pipeline of 3,138 hotels awaiting opening [6]. - Huazhu's RevPAR (Revenue per Available Room) increased by 3.1% year-on-year in Q1 2024, with direct stores showing an 8.8% increase [5][6].
华住集团-S：Q1业绩亮眼，经营凸显韧性