Jinwo Finance News | According to the research report from Founder Securities, h world group (01179) achieved revenue of 6.44 billion yuan in Q3 2024, a year-on-year increase of 2.4% (performance guidance year-on-year +2%~5%). Among this, h world group achieved domestic revenue of 5.2 billion yuan, year-on-year +1% (performance guidance year-on-year +1%~4%), and overseas revenue of 1.3 billion yuan, year-on-year +9%. The company realized net income attributable to the parent of 1.273 billion yuan, year-on-year -4.8%, corresponding to a net margin of 19.8%, year-on-year -1.5 percentage points. Looking at it in terms of domestic and overseas, h world group achieved net income of 1.4 billion yuan domestically, year-on-year flat, with overseas losses of 0.083 billion yuan, including one-time restructuring costs of 0.081 billion yuan.

The institution stated that in Q3 2024, the group opened 790 new stores, year-on-year +44%, closed 231 stores, with a net increase of 559 stores, and has a pipeline of 2,925 hotels, year-on-year -2%. (In Q2 2024, the group opened 572 new stores, year-on-year +53%, closed 103 stores, with a net increase of 469 stores); in Q3 2024, h world group opened 774 new stores domestically, year-on-year +37% (franchises 771, year-on-year +37%), with 217 stores closed and a net increase of 557 stores. As of Q3 2024, h world group has a total of 2,925 hotels awaiting opening, including 2,899 domestically and 26 overseas. (Compared to Q2 2024, h world group opened 567 new stores domestically, closed 101 stores, and had a net increase of 466 stores).

The institution expressed a bullish outlook on h world group's leading scale advantage and excellent operational management efficiency, expecting h world group's revenue from 2024 to 2026 to be 23.5/25.3/27.5 billion yuan, year-on-year +8%/+8%/+8%, and net income attributable to the parent to be 3.8/4.4/4.9 billion yuan, year-on-year -8%/+16%/+12%. The current stock price corresponds to PE ratios of 19/17/15 times, maintaining a 'recommend' rating.