Jinwu Financial News | According to the Caitong Securities Research Report, Huazhu Group-S (01179) announced the results for the first quarter of 2024. The company achieved operating income of 5.3 billion yuan, an increase of 17.8% over the previous year; achieved net profit of 659 million yuan, compared with 990 million yuan in the same period last year; and realized net profit of 770 million yuan, an increase of 100.8% over the previous year. Revenue growth in the first quarter exceeded the company's guidelines, and adjusted net profit doubled. Furthermore, the company's direct-run stores have grown significantly, and the opening of new stores has exceeded expectations.
The bank continued that the company has outstanding advantages in terms of brand, operation, and membership. The bank believes that the company's store opening expectations in 2024 will accelerate and superimpose operating efficiency advantages, and the annual results are expected to continue to be realized. The bank expects the company's net profit to be 42.24/47.72/5.434 billion yuan in 2024-2026, and the corresponding PE is 22.00/19.47/17.10 times, respectively, maintaining the “buy” rating.