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Huazhu Group Ltd
(1179)
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Rating:75Outperform
Price Target:
HK$41.00
▲(26.39% Upside)
Action:Reiterated
Date:08/19/26
The score is driven primarily by strong profitability/cash flow (high income statement and cash flow scores) and a very attractive valuation (low P/E and high dividend yield). Offsetting these positives are balance-sheet risk from high leverage and only modest/soft technical momentum (negative MACD with neutral RSI).
Positive Factors
Revenue and Margin Strength
Strong revenue recovery alongside robust gross, operating, and net margins indicates pricing power, favorable brand mix, and effective cost control. These characteristics can support durable profitability as demand normalizes across Huazhu’s lodging portfolio.
Negative Factors
Elevated Leverage
Debt remains high relative to equity for a lodging operator, leaving Huazhu more exposed to refinancing conditions, interest costs, and downturns in occupancy or room rates. This can constrain investment flexibility even as equity rebuilds.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Margin Strength
Strong revenue recovery alongside robust gross, operating, and net margins indicates pricing power, favorable brand mix, and effective cost control. These characteristics can support durable profitability as demand normalizes across Huazhu’s lodging portfolio.
Read all positive factors
Huazhu Group Ltd (1179) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$106.35B
Dividend Yield4.95%
Average Volume (3M)2.08M
Price to Earnings (P/E)18.2
Beta (1Y)1.13
Revenue Growth13.35%
EPS Growth37.98%
CountryHK
Employees26,458
SectorConsumer Cyclical
Sector Strength84
IndustryTravel Lodging
Share Statistics
EPS (TTM)1.62
Shares Outstanding3,098,323,700
10 Day Avg. Volume1,341,866
30 Day Avg. Volume2,078,780
Financial Highlights & Ratios
PEG Ratio-0.25
Price to Book (P/B)7.95
Price to Sales (P/S)4.02
P/FCF Ratio13.86
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$48.56Price Target Upside49.68% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering10
EPS Forecast (FY)2.09
Revenue Forecast (FY)HK$31.66B
Huazhu Group Ltd Business Overview & Revenue Model
Company Description
H World Group Limited, a prominent hospitality enterprise, focuses on the development and operation of hotels across the People's Republic of China. The company employs diverse business models, including leased and owned properties, manachised est...
How the Company Makes Money
Huazhu primarily makes money through a multi-model hotel platform that combines (1) leased-and-owned hotels and (2) managed and franchised hotels. In the leased-and-owned model, Huazhu earns revenue from room sales and ancillary hotel services at ...
Huazhu Group Ltd Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
58
Neutral
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 26.48B | 25.31B | 23.89B | 21.88B | 13.86B | 12.79B |
| Gross Profit | 10.82B | 9.97B | 9.86B | 7.54B | 1.60B | 1.50B |
| EBITDA | 8.61B | 8.08B | 6.54B | 7.15B | 1.32B | 1.67B |
| Net Income | 5.01B | 5.08B | 3.05B | 4.08B | -1.81B | -420.00M |
Balance Sheet | ||||||
| Total Assets | 63.60B | 64.80B | 62.55B | 63.53B | 61.51B | 63.27B |
| Cash, Cash Equivalents and Short-Term Investments | 15.70B | 15.43B | 11.08B | 9.13B | 5.37B | 7.71B |
| Total Debt | 34.23B | 36.08B | 35.45B | 35.88B | 43.89B | 44.16B |
| Total Liabilities | 49.37B | 51.84B | 50.28B | 51.28B | 52.70B | 52.23B |
| Stockholders Equity | 14.08B | 12.81B | 12.18B | 12.13B | 8.73B | 10.94B |
Cash Flow | ||||||
| Free Cash Flow | 7.98B | 7.35B | 6.62B | 6.77B | 511.00M | -333.00M |
| Operating Cash Flow | 8.74B | 8.16B | 7.52B | 7.67B | 1.56B | 1.34B |
| Investing Cash Flow | 1.21B | -1.02B | -2.24B | -1.48B | -522.00M | -1.40B |
| Financing Cash Flow | -5.75B | -4.19B | -5.50B | -3.72B | -1.39B | -1.80B |
Huazhu Group Ltd Technical Analysis
Negative
32.44
Price Trends
33.69
Positive
34.64
Negative
35.96
Negative
Market Momentum
0.48
Positive
44.45
Neutral
6.30
Positive
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 32.44 is below the 20-day moving average (MA) of 35.72, below the 50-day MA of 33.69, and below the 200-day MA of 35.96, indicating a neutral trend. The MACD of 0.48 indicates Positive momentum. The RSI at 44.45 is Neutral, neither overbought nor oversold. The STOCH value of 6.30 is Positive, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | HK$106.35B | 18.15 | 40.36% | 4.95% | 13.35% | 37.98% | |
74 Outperform | HK$1.87B | 19.00 | 2.28% | 1.92% | 3.53% | -7.65% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | HK$9.31B | 14.43 | 1.75% | 1.30% | -3.68% | ― | |
60 Neutral | HK$1.65B | 4.72 | 3.55% | 6.96% | -4.80% | 585.92% | |
53 Neutral | HK$14.62B | 12.72 | 2.68% | 3.73% | 5.29% | 15.06% | |
47 Neutral | HK$399.96M | -0.83 | -7.05% | 3.48% | 49.29% | 79.61% |
* Consumer Cyclical Sector Average
HK:1179
Huazhu Group Ltd
34.38
6.51
23.37%
HK:0045
Hongkong & Shanghai Hotels
5.54
-0.39
-6.58%
HK:1270
Langham Hospitality Investments
0.46
-0.02
-4.37%
HK:0069
Shangri-La Asia
4.02
-0.38
-8.72%
HK:1221
Sino Hotels (Holdings) Ltd.
1.56
0.21
15.13%
HK:0078
Regal Hotels International Holdings Limited
0.45
-0.19
-29.69%
Huazhu Group Ltd Corporate Events
H World Group Declares USD 0.087 Cash Dividend for Hong Kong Shareholders
Aug 17, 2026
H World Group Limited has declared an ordinary cash dividend of USD 0.087 per share, signaling continued returns to shareholders through its Hong Kong listing. The dividend will be paid in U.S. dollars and reflects the company’s ongoing capi...
H World Group Sets Date for Q2 2026 Results and Mulls Cash Dividend
Aug 5, 2026
H World Group Limited has scheduled an audit committee meeting for August 17, 2026, to review and approve its unaudited financial results for the second quarter and first half of 2026. The results will be released after Hong Kong trading hours and...
H World Group Adds Veteran Investor Sun Yanjun to Board
Jul 28, 2026
H World Group Limited has appointed Mr. Sun Yanjun as an independent director and independent non-executive director on its board, effective immediately. The move expands the company’s board with a figure who brings extensive experience in p...
H World shareholders approve auditor and board re-elections at 2026 AGM
Jun 26, 2026
H World Group Limited reported that shareholders at its 2026 annual general meeting on June 26 approved the ratification of Deloitte Touche Tohmatsu Certified Public Accountants LLP as the company’s auditor for 2026 and authorized the board ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.