Jinwu Financial News | Minsheng Securities released a research report that Huazhu Group (01179) achieved operating income of 21.9 billion yuan in 2023, an increase of 57.9% over the previous year, and net profit of 4.1 billion yuan. The same period last year was a loss of 1.8 billion yuan, reversing the year-on-year loss. As of Q4 '23, the company had 9,394 hotels worldwide, including 4984/3543/704/137 budget/midrange/high-end hotels respectively. Hotel quality continued to upgrade, and the main mid-range brand matrix was further consolidated.
According to the bank, the company has stable barriers as a leading hotel. It is expected to accelerate the opening of the store in 2024 with strong operational efficiency, internal quality optimization and high-quality development of the hotel, continuous integration of membership/supply chain platforms, and the company's subsequent performance and operating quality are expected to be further optimized. The estimated net profit for 24-26 will be 44/50/5.4 billion yuan, respectively, and the corresponding PE will be 24/21/19x, respectively, maintaining the “recommended” rating.