Performance Divergence: Chinese hotel stocks have shown varied performance, with HWORLD-S and JIN JIANG HOTELS performing well, while Atour Lifestyle and BTG HOTELS lagged behind the industry.
Growth Rates: HWORLD-S and Atour Lifestyle have seen significant growth of 41% and 59% respectively this year, whereas JIN JIANG HOTELS decreased by 2% and BTG HOTELS increased by only 7%.
Investment Recommendations: JPMorgan advises investors to favor HWORLD-S and Atour Lifestyle for the next 12 months due to their stronger brands and favorable valuations compared to JIN JIANG HOTELS and BTG HOTELS.
Room Expansion Trends: There is a noted slowdown in new room additions among the four hotels, with HWORLD-S and Atour Lifestyle expanding more rapidly, indicating a trend of industry consolidation that benefits them.
Wall Street analysts forecast 01179 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 01179 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Analyst Rating
Wall Street analysts forecast 01179 stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for 01179 is USD with a low forecast of USD and a high forecast of USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
0 Buy
0 Hold
0 Sell
Current: 38.560
Low
Averages
High
Current: 38.560
Low
Averages
High
JPMorgan
Outperform
initiated
$41
Al Analysis
2025-12-04
Reason
JPMorgan
Price Target
$41
Al Analysis
2025-12-04
initiated
Outperform
Reason
JPMorgan's analyst rating for HWORLD-S and Atour Lifestyle is based on their stronger brand presence and product offerings, which provide clearer long-term growth prospects. The report highlights that these companies have outperformed the industry, with significant growth rates of 41% and 59% respectively this year, compared to the underperformance of JIN JIANG HOTELS and BTG HOTELS. Additionally, the valuations of HWORLD-S and Atour Lifestyle are considered consistent with or even cheaper than those of their competitors, further supporting the recommendation to overweight these stocks. The report also notes that HWORLD-S and Atour Lifestyle are expanding at a faster pace, which aligns with industry consolidation trends that favor their growth.
Haitong International
Outperform
initiated
$41
2025-12-02
Reason
Haitong International
Price Target
$41
2025-12-02
initiated
Outperform
Reason
The analyst rating of "Outperform" for HWORLD-S (01179.HK) by Haitong International is based on several key factors:
1. Market Leadership: HWORLD-S is recognized as a leader in China's hotel chain market, which positions it favorably within the industry.
2. Increasing Chain Penetration: The company is benefiting from a rising chain penetration rate in the hotel industry, indicating growth potential.
3. Strong Operational Model: HWORLD-S employs a multi-brand matrix and a membership system, supported by an efficient team execution that allows it to continuously gain market share.
4. High Proportion of Mid-Scale Hotels: The company's focus on mid-scale hotels contributes to its resilience and enhances its revenue per available room (RevPAR).
5. Transition to Asset-Light Model: HWORLD-S is shifting towards a high-margin, asset-light franchise model, which includes closing low-quality stores. This transition is expected to lead to continuous profit margin expansion.
6. Valuation Approach: The broker applied a target EV/EBITDA multiple of 13x to derive a target price of $41, reflecting a cautious yet optimistic outlook given the macroeconomic uncertainties.
Overall, these factors contribute to a positive outlook for HWORLD-S, justifying the "Outperform" rating.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
