tiprankstipranks
Trending News
More News >
Huazhu Group Ltd (HK:1179)
:1179

Huazhu Group Ltd (1179) AI Stock Analysis

Compare
2 Followers

Top Page

HK

Huazhu Group Ltd

(Frankfurt:1179)

Rating:71Outperform
Price Target:
HK$31.00
▲(12.52%Upside)
Huazhu Group Ltd's overall score is driven by strong financial performance with notable revenue growth and efficient cash flow management. However, high leverage and mixed technical signals slightly offset these strengths. The valuation suggests the stock is fairly priced, with a good dividend yield adding to its appeal.

Huazhu Group Ltd (1179) vs. iShares MSCI Hong Kong ETF (EWH)

Huazhu Group Ltd Business Overview & Revenue Model

Company DescriptionHuazhu Group Ltd (1179) is a leading hotel management company based in China, operating a vast portfolio of hotels across various brands and segments. The company caters to a diverse clientele, ranging from budget-conscious travelers to luxury seekers, through its wide array of hotel brands including HanTing, Hi Inn, Elan, and Joya, among others. Huazhu focuses on delivering high-quality services and experiences, leveraging its extensive network and deep understanding of the Chinese hospitality market.
How the Company Makes MoneyHuazhu Group Ltd generates revenue primarily through hotel operations, which include room rentals, food and beverage sales, and ancillary services such as event hosting and conferencing. The company operates on a franchise and lease model, where it earns income from franchise fees and lease payments from its franchised and leased hotels. Additionally, Huazhu benefits from partnerships with international hotel brands, such as Accor, which enhances its market reach and brand recognition. The company's earnings are significantly influenced by its ability to expand its hotel network, optimize occupancy rates, and maintain competitive pricing strategies in the hospitality industry.

Huazhu Group Ltd Financial Statement Overview

Summary
Overall, Huazhu Group Ltd has shown impressive growth in revenue and a solid recovery in profitability. The company is effectively managing its cash flows, although high leverage remains a concern. Continued focus on reducing debt levels while maintaining revenue growth will be critical for sustaining its financial health.
Income Statement
75
Positive
Huazhu Group Ltd has shown a strong recovery with a significant revenue growth rate of 9.18% from 2023 to 2024 and a substantial improvement in net profit margin from 18.67% in 2023 to 12.75% in 2024. The gross profit margin is healthy, standing at 41.26% in 2024. However, the net profit margin decreased from the previous year, indicating some pressure on profitability.
Balance Sheet
68
Positive
The company's balance sheet shows a high debt-to-equity ratio of 2.91 in 2024, which indicates significant leverage. However, the return on equity (ROE) has improved to 25.03%, reflecting effective use of equity to generate profits. The equity ratio remains low at 19.46%, suggesting a reliance on debt financing.
Cash Flow
82
Very Positive
Huazhu Group Ltd demonstrates robust cash flow management with a slight increase in free cash flow to net income ratio to 2.17 in 2024. The operating cash flow to net income ratio is strong at 2.47, indicating efficient cash generation from operations. Despite a decrease in free cash flow growth rate, the overall cash flow position remains solid.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
23.89B21.88B13.86B12.79B10.20B
Gross Profit
9.86B7.54B1.60B1.50B467.00M
EBIT
5.20B4.71B-197.00M410.00M-1.22B
EBITDA
6.54B7.15B1.32B1.67B-384.00M
Net Income Common Stockholders
3.05B4.08B-1.81B-420.00M-2.06B
Balance SheetCash, Cash Equivalents and Short-Term Investments
11.08B9.13B5.37B7.71B10.93B
Total Assets
62.55B63.53B61.51B63.27B65.80B
Total Debt
35.45B35.88B43.89B44.16B44.98B
Net Debt
27.97B28.93B40.30B39.05B37.95B
Total Liabilities
50.28B51.28B52.70B52.23B54.37B
Stockholders Equity
12.18B12.13B8.73B10.94B11.33B
Cash FlowFree Cash Flow
6.62B6.77B511.00M-333.00M-1.17B
Operating Cash Flow
7.52B7.67B1.56B1.34B609.00M
Investing Cash Flow
-2.24B-1.48B-522.00M-1.40B-8.10B
Financing Cash Flow
-5.50B-3.72B-1.39B-1.80B883.00M

Huazhu Group Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price27.55
Price Trends
50DMA
27.75
Negative
100DMA
26.84
Positive
200DMA
26.23
Positive
Market Momentum
MACD
-0.03
Positive
RSI
46.93
Neutral
STOCH
38.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1179, the sentiment is Negative. The current price of 27.55 is below the 20-day moving average (MA) of 28.29, below the 50-day MA of 27.75, and above the 200-day MA of 26.23, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 46.93 is Neutral, neither overbought nor oversold. The STOCH value of 38.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1179.

Huazhu Group Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$47.11B20.7914.19%1.23%14.36%33.22%
71
Outperform
HK$1.62B6.952.48%3.40%-22.28%-79.09%
71
Outperform
HK$83.42B25.5428.95%4.98%4.79%-11.38%
62
Neutral
$6.94B11.292.95%3.87%2.70%-24.49%
50
Neutral
HK$190.89M-155.60%-46.94%-89.98%
48
Neutral
$12.40B-4.63%7.98%-4.61%-1035.60%
45
Neutral
HK$310.80M
-34.67%-99.72%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1179
Huazhu Group Ltd
27.75
1.45
5.53%
HK:1993
Asiaray Media Group Ltd.
0.65
-0.70
-51.85%
HK:1530
3SBio
19.44
13.37
220.32%
HK:2778
Champion Real Estate Investment
1.98
0.44
28.91%
HK:1270
Langham Hospitality Investments
0.48
-0.08
-14.29%
HK:2012
Sunshine Oilsands
0.49
-0.56
-53.33%

Huazhu Group Ltd Corporate Events

H World Group Reports Strong Q1 2025 Financial Results
May 20, 2025

H World Group Limited announced its unaudited financial results for the first quarter of 2025, reporting a 14.3% year-over-year increase in hotel turnover to RMB22.5 billion. The company’s revenue rose by 2.2% to RMB5.4 billion, with notable growth in manachised and franchised revenue. Net income increased to RMB894 million, and EBITDA improved to RMB1.6 billion, reflecting strong operational performance despite a decline in the Legacy-DH segment. These results highlight the company’s robust growth trajectory and strategic positioning in the global hospitality market.

The most recent analyst rating on (HK:1179) stock is a Buy with a HK$37.00 price target. To see the full list of analyst forecasts on Huazhu Group Ltd stock, see the HK:1179 Stock Forecast page.

H World Group Announces 2025 AGM with Key Resolutions
May 8, 2025

H World Group Limited has announced its 2025 Annual General Meeting (AGM) scheduled for June 27, 2025, in Shanghai, China. Key resolutions include the ratification of Deloitte Touche Tohmatsu as the company’s auditor for 2025, the re-election of Ms. Jie Zheng as an executive director, and authorization for directors to undertake necessary actions to implement these resolutions. The meeting will also present the company’s audited financial statements for the year ending December 31, 2024. This AGM is a significant event for stakeholders, as it addresses critical governance and financial oversight issues.

H World Group Schedules Q1 2025 Financial Results Announcement
May 8, 2025

H World Group Limited has announced the date for its audit committee meeting, scheduled for May 20, 2025, to review and approve the company’s unaudited financial results for the first quarter of 2025. The results will be published after the Hong Kong Stock Exchange trading hours and before the U.S. market opens, with a conference call to follow for stakeholders to discuss the outcomes.

H World Group Limited Files Annual Report for 2024
Apr 25, 2025

H World Group Limited has announced the filing of its annual report on Form 20-F for the fiscal year ending December 31, 2024, with the United States Securities and Exchange Commission. This filing is a regulatory requirement and provides stakeholders with comprehensive financial information about the company’s operations over the past year. The announcement underscores the company’s commitment to transparency and compliance with international financial reporting standards, which could enhance investor confidence and potentially impact its market positioning.

H World Group Sets Record Date for Shareholder Meeting
Apr 23, 2025

H World Group Limited has announced the record date for determining the eligibility of its ordinary shareholders to attend and vote at the upcoming annual general meeting. The record date is set for May 9, 2025, and shareholders must ensure their documents are lodged with the company’s Hong Kong branch by this date. Holders of American Depositary Shares (ADSs) will not be able to attend or vote in person but can instruct Citibank, N.A., the ADS depositary, on how to vote their shares. This announcement underscores the company’s commitment to maintaining transparent shareholder engagement and could impact how international stakeholders participate in governance.

H World Group Limited Declares Ordinary Cash Dividend
Mar 20, 2025

H World Group Limited has announced the declaration and payment of an ordinary cash dividend of USD 0.097 per share. The ex-dividend date is set for April 3, 2025, with the payment date scheduled for April 23, 2025. This announcement reflects the company’s commitment to providing returns to its shareholders and may have implications for investor sentiment and market positioning.

H World Group Reports 2024 Financial Results and Declares Cash Dividend
Mar 20, 2025

H World Group Limited announced its unaudited financial results for the fourth quarter and full year of 2024, highlighting a 16.5% year-over-year increase in hotel turnover for the fourth quarter and a 15.5% increase for the full year. Despite a decline in net income due to foreign exchange losses and increased withholding taxes, the company reported a revenue increase of 7.8% for the fourth quarter, surpassing previous guidance. The board approved a cash dividend of US$0.097 per ordinary share, amounting to approximately US$300 million, to be distributed to shareholders in April 2025.

H World Group Schedules Financial Results Announcement and Considers Cash Dividend
Mar 10, 2025

H World Group Limited has announced that its audit committee will meet on March 20, 2025, to review and approve the company’s unaudited financial results for the fourth quarter and full year ending December 31, 2024. The results will be published on the same day, and a conference call will be held to discuss the financial outcomes. Additionally, the board is considering the declaration and payment of a cash dividend, with a decision expected around the same date.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.