Huazhu Group Ltd (1179) AI Stock Analysis

• Market Cap: HK$90.25B
• Dividend Yield: 4.6%
• Average Volume (3M): 1.90M
• Price to Earnings (P/E): 24.1
• Beta (1Y): 1.22
• Revenue Growth: 4.05%
• EPS Growth: 1.31%
• Country: HK
• Employees: 28,502
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Travel Lodging
• EPS (TTM): 0.46
• Shares Outstanding: 3,069,390,600
• 10 Day Avg. Volume: 1,791,522
• 30 Day Avg. Volume: 1,896,144
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: HK$32.84
• Price Target Upside: 10.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: HK$31.00 ▲(3.89% Upside)

Huazhu Group Ltd's overall stock score is driven by strong financial performance and positive technical indicators. The company's robust revenue growth and improved profitability margins are significant strengths. While the high P/E ratio suggests potential overvaluation, the attractive dividend yield offers a compensating factor. The absence of recent earnings call data and corporate events limits additional insights.

Huazhu Group Ltd Business Overview & Revenue Model

Company Description

Huazhu Group Ltd is a leading hotel management company based in China, operating a diverse portfolio of hotel brands across various market segments. Founded in 2005, Huazhu has expanded its presence significantly in the hospitality industry, offering services ranging from budget to upscale accommodations. The company operates under several brands, including Hanting, JI Hotel, and Elan Hotels, and has established itself as a key player in the competitive Chinese hotel market, catering to both domestic and international travelers.

How the Company Makes Money

Huazhu Group Ltd generates revenue primarily through hotel management and franchising fees, which are derived from the operation of its various hotel brands. The company earns money by charging franchise fees to hotel owners who operate their properties under Huazhu's brands, as well as management fees for hotels that are directly managed by Huazhu. Additionally, Huazhu benefits from ancillary services, including sales of food and beverage, laundry, and other guest services. The company's strategic partnerships with online travel agencies and other distribution platforms further enhance its revenue by increasing visibility and bookings. Seasonal and promotional pricing strategies also contribute to revenue generation, particularly during peak travel seasons. Overall, Huazhu's diversified portfolio and extensive network of hotels enable it to capitalize on the growing demand for travel and accommodation in China.

Huazhu Group Ltd Financial Statement Overview

Summary

Huazhu Group Ltd exhibits strong financial performance with robust revenue and profit growth, efficient operational management, and strong cash flow generation. However, the high debt-to-equity ratio indicates significant leverage, which poses a risk and requires careful monitoring.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.29B	23.89B	21.88B	13.86B	12.79B	10.20B
Gross Profit	9.25B	9.86B	7.54B	1.60B	1.50B	467.00M
EBITDA	7.48B	6.54B	7.15B	1.32B	1.67B	-384.00M
Net Income	3.76B	3.05B	4.08B	-1.81B	-420.00M	-2.06B
Balance Sheet
Total Assets	64.78B	62.55B	63.53B	61.51B	63.27B	65.80B
Cash, Cash Equivalents and Short-Term Investments	12.45B	11.08B	9.13B	5.37B	7.71B	10.93B
Total Debt	37.77B	35.45B	35.88B	43.89B	44.16B	44.98B
Total Liabilities	52.49B	50.28B	51.28B	52.70B	52.23B	54.37B
Stockholders Equity	12.15B	12.18B	12.13B	8.73B	10.94B	11.33B
Cash Flow
Free Cash Flow	6.79B	6.62B	6.77B	511.00M	-333.00M	-1.17B
Operating Cash Flow	7.64B	7.52B	7.67B	1.56B	1.34B	609.00M
Investing Cash Flow	-1.94B	-2.24B	-1.48B	-522.00M	-1.40B	-8.10B
Financing Cash Flow	-3.48B	-5.50B	-3.72B	-1.39B	-1.80B	883.00M

Huazhu Group Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 29.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 29.84 is below the 20-day moving average (MA) of 29.85, above the 50-day MA of 29.07, and above the 200-day MA of 26.79, indicating a bullish trend. The MACD of 0.26 indicates Negative momentum. The RSI at 55.68 is Neutral, neither overbought nor oversold. The STOCH value of 76.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	―	HK$90.25B	24.09	30.91%	4.60%	4.05%	1.31%
1221	―	HK$1.80B	17.21	2.49%	1.88%	-7.90%	58.19%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0069	―	$16.04B	16.42	2.40%	3.16%	-0.04%	-15.56%
1270	―	HK$1.65B	33.80	0.50%	3.02%	-22.04%	-90.42%
0045	―	$10.07B	-12.84	-2.21%	1.32%	-12.90%	-95.96%
0078	―	€548.26M	-0.31	-29.62%	―	-0.60%	34.74%

Huazhu Group Ltd Corporate Events

H World Group Limited Files Unaudited Financial Statements with SEC

H World Group Limited announced the filing of its unaudited condensed consolidated financial statements for the six months ended June 30, 2025, with the U.S. Securities and Exchange Commission. This filing is part of the company’s ongoing regulatory compliance and is incorporated into its registration statement on Form F-3. The announcement highlights the company’s commitment to transparency and adherence to international financial reporting standards.

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 Limited Announces Ordinary Dividend Payment

H World Group Limited has announced the declaration and payment of an ordinary cash dividend of USD 0.081 per share. The ex-dividend date is set for September 3, 2025, with the payment date scheduled for September 19, 2025. This announcement reflects the company’s commitment to delivering shareholder value and may influence investor sentiment positively.

The most recent analyst rating on (HK:1179) stock is a Buy with a HK$29.00 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 to Host Inaugural Capital Markets Day in Shanghai

H World Group Limited has announced its inaugural H World Capital Markets Day to be held on October 30, 2025, in Shanghai, China. This event marks a significant milestone in the company’s evolution and will outline its future strategic direction, potentially impacting its operations and industry positioning.

The most recent analyst rating on (HK:1179) stock is a Buy with a HK$28.00 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 Changes in Board Composition

H World Group Limited, formerly known as Huazhu Group Limited, announced changes in its board composition. Ms. Zhao Tong Tong and Mr. Shang Jian are stepping down from their roles as independent directors, with Mr. Shang also leaving his positions as chairman of the audit committee and a member of the compensation committee. They will be succeeded by Mr. Justin Martin Leverenz and Ms. Zhang Yi, who will also serve as the chairwoman of the audit committee. These changes reflect the company’s ongoing efforts to strengthen its governance and strategic direction.

The most recent analyst rating on (HK:1179) stock is a Buy with a HK$28.00 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 to Announce Q2 2025 Financial Results and Consider Cash Dividend

H World Group Limited announced that its audit committee will meet on August 20, 2025, to review and approve the company’s unaudited financial results for the second quarter and interim period ending June 30, 2025. The results will be published on the same day after trading hours in Hong Kong and before the U.S. market opens. The company will also host a conference call to discuss the results, and a replay will be available for twelve months. Additionally, the board is considering declaring a cash dividend, with a decision expected around the same date.

The most recent analyst rating on (HK:1179) stock is a Buy with a HK$33.00 price target. To see the full list of analyst forecasts on Huazhu Group Ltd stock, see the HK:1179 Stock Forecast page.