Huazhu Group Ltd (1179) AI Stock Analysis

• Market Cap: €75.26B
• Dividend Yield: 3%
• Average Volume (3M): 1.90M
• Price to Earnings (P/E): 23.9
• Beta (1Y): 1.24
• Revenue Growth: 4.79%
• EPS Growth: -11.38%
• Country: HK
• Employees: 28,502
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Travel Lodging
• EPS (TTM): 0.27
• Shares Outstanding: 3,069,390,600
• 10 Day Avg. Volume: 3,010,657
• 30 Day Avg. Volume: 1,901,274
• PEG Ratio: 21.37
• Price to Book (P/B): 6.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.34
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €34.31
• Price Target Upside: 31.47% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 65 Neutral
• Price Target: HK$28.00 ▲(7.28%Upside)

Huazhu Group Ltd's overall stock score is driven by its strong financial performance, which is offset by technical indicators showing weak momentum and a fairly valued position. The high debt levels present a risk, requiring prudent management to sustain growth.

Huazhu Group Ltd Business Overview & Revenue Model

Company Description

H World Group Limited, together with its subsidiaries, develops leased and owned, manachised, and franchised hotels primarily in the People's Republic of China. The company operates hotels under its own brands, such as HanTing Hotel, Ni Hao Hotel, Hi Inn, Elan Hotel, Zleep Hotels, Ibis Hotel, JI Hotel, Orange Hotel, Starway Hotel, Ibis Styles Hotel, CitiGO Hotel, Crystal Orange Hotel, IntercityHotel, Manxin Hotel, Mercure Hotel, Madison Hotel, Novotel Hotel, Joya Hotel, Blossom House, Steigenberger Hotels & Resorts, MAXX by Steigenberger, Jaz in the City, Grand Mercure, Steigenberger Icon, and Song Hotels. As of June 30, 2022, it operated 8,176 hotels with 773,898 rooms. The company was formerly known as Huazhu Group Limited and changed its name to H World Group Limited in June 2022. H World Group Limited was founded in 2005 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

Huazhu Group Ltd primarily generates revenue through its hotel operations, which include room rentals, food and beverage sales, and other ancillary services. The company operates under a franchise and management model, where it earns franchise fees and management fees from hotel owners. Additionally, Huazhu Group benefits from economies of scale and a robust distribution network that enhances its operational efficiency. Strategic partnerships with international hotel chains like AccorHotels also contribute to its earnings by expanding its brand portfolio and market reach.

Huazhu Group Ltd Financial Statement Overview

Summary

Huazhu Group Ltd exhibits strong financial performance with significant revenue and profit growth, efficient operational management, and robust cash flow generation. However, high debt levels pose a risk and require careful management.

Income Statement

Huazhu Group Ltd has demonstrated strong financial performance in the TTM (Trailing-Twelve-Months) period with a gross profit margin of 37.44% and a net profit margin of 13.68%. Revenue growth has been solid with a notable increase from the previous periods, reflecting a recovery from the pandemic impact in 2022. The EBIT and EBITDA margins are robust at 21.98% and 28.65%, respectively, indicating efficient operational management.

Balance Sheet

The company's balance sheet shows a debt-to-equity ratio of 3.35, which is relatively high, suggesting significant leverage. However, the equity ratio of 17.05% indicates a moderate level of shareholder equity relative to total assets. Return on equity is strong at 31.28%, reflecting effective use of equity to generate profits.

Cash Flow

Huazhu Group has a healthy cash flow position with an operating cash flow to net income ratio of 2.20, showing strong cash generation relative to net income. The free cash flow has grown from previous periods, indicating improved cash management. The free cash flow to net income ratio of 1.94 suggests efficient conversion of net income into free cash flow, supporting financial flexibility.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.89B	21.88B	13.86B	12.79B	10.20B
Gross Profit	9.86B	7.54B	1.60B	1.50B	467.00M
EBITDA	6.54B	7.15B	1.32B	1.67B	-384.00M
Net Income	3.05B	4.08B	-1.81B	-420.00M	-2.06B
Balance Sheet
Total Assets	62.55B	63.53B	61.51B	63.27B	65.80B
Cash, Cash Equivalents and Short-Term Investments	11.08B	9.13B	5.37B	7.71B	10.93B
Total Debt	35.45B	35.88B	43.89B	44.16B	44.98B
Total Liabilities	50.28B	51.28B	52.70B	52.23B	54.37B
Stockholders Equity	12.18B	12.13B	8.73B	10.94B	11.33B
Cash Flow
Free Cash Flow	6.62B	6.77B	511.00M	-333.00M	-1.17B
Operating Cash Flow	7.52B	7.67B	1.56B	1.34B	609.00M
Investing Cash Flow	-2.24B	-1.48B	-522.00M	-1.40B	-8.10B
Financing Cash Flow	-5.50B	-3.72B	-1.39B	-1.80B	883.00M

Huazhu Group Ltd Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 26.1 is below the 20-day moving average (MA) of 26.29, below the 50-day MA of 27.24, and below the 200-day MA of 26.88, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 45.64 is Neutral, neither overbought nor oversold. The STOCH value of 24.17 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1179	65 Neutral	€75.26B	23.93	28.95%	3.00%	4.79%	-11.38%
Sector *	57 Neutral	HK$25.53B	4.08	-2.03%	6.14%	-0.31%	-67.64%
HKSHF	―	$1.25B	―	-2.63%	1.38%	―	―
1270	65 Neutral	HK$2.03B	8.64	2.48%	2.71%	-22.28%	-79.09%
SHALF	―	$2.15B	13.23	3.10%	4.34%	―	―
1221	62 Neutral	HK$1.65B	20.41	1.91%	1.07%	-3.42%	28.95%
RH6B	―	€60.13M	―	-36.48%	―	―	―

Huazhu Group Ltd Corporate Events

H World Group Limited Announces Key Resolutions from 2025 AGM

H World Group Limited held its 2025 annual general meeting on June 27, where key resolutions were passed, including the appointment of Deloitte Touche Tohmatsu as the company’s auditor for 2025 and the re-election of Ms. Jie Zheng as an executive director. The company also authorized its directors and officers to undertake necessary actions to implement these resolutions. This announcement aligns with regulatory requirements and will be filed with the U.S. Securities and Exchange Commission.

The most recent analyst rating on (HK:1179) stock is a Buy with a HK$31.00 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 Reports Strong Q1 2025 Financial Results

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

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

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

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

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.