Jinwu Financial News | According to China Merchants Securities Research Report, Huazhu Group (01179) announced that it will achieve revenue of 21.9 billion yuan/58% year-on-year increase in 2023, net profit to mother of 4.09 billion yuan/loss of 1.82 billion yuan last year, and adjusted EBITDA of 6.87 billion yuan/only 610 million yuan last year, leading the industry in terms of operating data and performance.
According to the bank, travel during the Spring Festival is hot in 2024, and demand for leisure is expected to continue. In the first half of the year, the exhibition supported business travel demand, and supply in the hotel industry accelerated after the epidemic, and the chain rate and concentration continued to increase, leading players are expected to continue to benefit from pattern optimization. In the long run, store expansion and brand upgrading are still the core driving force for Huazhu's future performance growth. The company has a long competitive advantage in brand, membership, and technology-enabled operations, and is expected to cross the hotel cycle and achieve long-term steady growth.
The bank expects the company to achieve operating income of 243/26 billion yuan in 2024-2025, an increase of 11.1%/7.0% over the previous year; the company's net profit in 2024-2025 is estimated to be 43.2/4.94 billion yuan, which is lower than that of peers. For the first time, it was covered with a “highly recommended” rating, and investors are advised to pay active attention.