<Research>CLSA: China's Investigation into TRIP.COM-S May Not Benefit HWORLD-S or Atour
Antitrust Investigation Impact: China's State Administration for Market Regulation is investigating TRIP.COM-S, leading to significant short selling and concerns about its effects on the hotel industry, particularly chain hotels like HWORLD-S and Atour.
Potential Benefits for Hotels: There is speculation that reduced commission rates from online travel agencies (OTAs) could benefit hotels, but CLSA warns that the powerful network effects of OTAs may prevent a significant shift in booking volumes to hotel apps.
Revenue Implications: Hotels might lower room prices due to savings from OTAs, which could result in a decrease in revenue per available room (RevPAR), impacting overall earnings.
Market Outlook: CLSA predicts continued hotel openings in China, including independent hotels, but suggests that the growth trend in average RevPAR may be limited, favoring Atour over HWORLD-S due to differing sensitivities to RevPAR trends.
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<Research>CLSA: China's Investigation into TRIP.COM-S May Not Benefit HWORLD-S or Atour
Antitrust Investigation Impact: China's State Administration for Market Regulation is investigating TRIP.COM-S, leading to significant short selling and concerns about its effects on the hotel industry, particularly chain hotels like HWORLD-S and Atour.
Potential Benefits for Hotels: There is speculation that reduced commission rates from online travel agencies (OTAs) could benefit hotels, but CLSA warns that the powerful network effects of OTAs may prevent a significant shift in booking volumes to hotel apps.
Revenue Implications: Hotels might lower room prices due to savings from OTAs, which could result in a decrease in revenue per available room (RevPAR), impacting overall earnings.
Market Outlook: CLSA predicts continued hotel openings in China, including independent hotels, but suggests that the growth trend in average RevPAR may be limited, favoring Atour over HWORLD-S due to differing sensitivities to RevPAR trends.
BrainCo Secures RMB2 Billion in Financing with Participation from LENS and HWORLD-S, According to Reports
BrainCo Financing: BrainCo, a Chinese company focused on brain-computer interface technology, has secured RMB2 billion in funding, making it the second-largest financing round globally after Neuralink.
Investors Involved: Notable investors in this financing round include IDG, LENS, HWORLD-S, LY ITECH, and TAL Education.
<BofAS Analysis> Ratings and Target Prices for Chinese Consumers (Table)
Stock Performance: Various companies listed, including H World Group and Pop Mart, showed positive stock movements, with H World-S increasing by 3.96% and Pop Mart by 2.04%.
Short Selling Data: Notable short selling activity was reported for Pop Mart and Wancheng Group, with ratios of 26.286% and 21.972%, respectively, indicating significant market speculation against these stocks.
BofAS Expects Continued Short-Term Pressure on China's Consumption Fundamentals; Recommends Growth and Yield Stocks Such as HWORLD
China's Consumption Downturn: BofA Securities reports that China's consumption downturn has lasted nearly four years, aligning with historical trends, but the future remains uncertain due to ongoing pressures from employment, consumer confidence, and lack of stimulus policies.
Impact on Stock Prices: Despite the consumption challenges, BofA Securities believes that share prices may not be as negatively impacted, although they have lowered EPS forecasts for 15 Chinese consumer stocks and reduced their average target price.
Investment Recommendations: BofA Securities has initiated coverage on WANCHEN GROUP and identified top picks for 2026 that combine growth and yield, including HWORLD-S, POP MART, and YUM CHINA, among others.
Sector Ratings: The latest ratings and target prices for the consumer sector have been updated, with a focus on stocks that exhibit growth potential and high dividend yields amidst changing market conditions.
<Research>BOCI Anticipates Hainan's Tourism Retail and Online Travel Platforms to Gain from China's Strong Tourism Performance
Tourism Growth: China's tourism saw a significant boost during the 2026 New Year holiday, with cross-border trips increasing by 28.6% year-over-year, indicating a trend towards experiential consumption that began in 2025.
Hainan's Retail Industry: BOCI predicts that Hainan's tourism retail sector will experience substantial short-term benefits, while China's online travel platforms are expected to thrive in the long term despite some regional challenges.
Stock Performance Outlook: BOCI maintains an optimistic outlook for TRIP.COM-S, setting a target price of HKD638, and highlights HWORLD-S and CTG DUTY-FREE as strong performers with target prices of HKD39.8 and HKD81, respectively.
Investment Recommendations: All mentioned stocks are rated as "Buy," reflecting confidence in their potential for growth, particularly in the context of increasing outbound travel convenience.
<Study>JPM Ratings and Target Prices for Chinese Hotel Operators (Table)
Investment Ratings for H World Group: H World Group Limited (HTHT.US) is rated as Overweight with a target price increase from US$51 to US$58, while HWORLD-S (01179.HK) also holds an Overweight rating with a target price of HK$40 to HK$45.
Performance of Other Hotel Stocks: Atour Lifestyle Holdings Limited (ATAT.US) is rated Overweight with a target price of US$58, while BTG Hotels (600258.SH) is rated Underweight with a target price of RMB13, and Jin Jiang Hotels (600754.SH) is rated Underweight with a target price of RMB20.
<Research>CLSA: China's Investigation into TRIP.COM-S May Not Benefit HWORLD-S or Atour
Antitrust Investigation Impact: China's State Administration for Market Regulation is investigating TRIP.COM-S, leading to significant short selling and concerns about its effects on the hotel industry, particularly chain hotels like HWORLD-S and Atour.
Potential Benefits for Hotels: There is speculation that reduced commission rates from online travel agencies (OTAs) could benefit hotels, but CLSA warns that the powerful network effects of OTAs may prevent a significant shift in booking volumes to hotel apps.
Revenue Implications: Hotels might lower room prices due to savings from OTAs, which could result in a decrease in revenue per available room (RevPAR), impacting overall earnings.
Market Outlook: CLSA predicts continued hotel openings in China, including independent hotels, but suggests that the growth trend in average RevPAR may be limited, favoring Atour over HWORLD-S due to differing sensitivities to RevPAR trends.
BrainCo Secures RMB2 Billion in Financing with Participation from LENS and HWORLD-S, According to Reports
BrainCo Financing: BrainCo, a Chinese company focused on brain-computer interface technology, has secured RMB2 billion in funding, making it the second-largest financing round globally after Neuralink.
Investors Involved: Notable investors in this financing round include IDG, LENS, HWORLD-S, LY ITECH, and TAL Education.
<BofAS Analysis> Ratings and Target Prices for Chinese Consumers (Table)
Stock Performance: Various companies listed, including H World Group and Pop Mart, showed positive stock movements, with H World-S increasing by 3.96% and Pop Mart by 2.04%.
Short Selling Data: Notable short selling activity was reported for Pop Mart and Wancheng Group, with ratios of 26.286% and 21.972%, respectively, indicating significant market speculation against these stocks.
BofAS Expects Continued Short-Term Pressure on China's Consumption Fundamentals; Recommends Growth and Yield Stocks Such as HWORLD
China's Consumption Downturn: BofA Securities reports that China's consumption downturn has lasted nearly four years, aligning with historical trends, but the future remains uncertain due to ongoing pressures from employment, consumer confidence, and lack of stimulus policies.
Impact on Stock Prices: Despite the consumption challenges, BofA Securities believes that share prices may not be as negatively impacted, although they have lowered EPS forecasts for 15 Chinese consumer stocks and reduced their average target price.
Investment Recommendations: BofA Securities has initiated coverage on WANCHEN GROUP and identified top picks for 2026 that combine growth and yield, including HWORLD-S, POP MART, and YUM CHINA, among others.
Sector Ratings: The latest ratings and target prices for the consumer sector have been updated, with a focus on stocks that exhibit growth potential and high dividend yields amidst changing market conditions.
<Research>BOCI Anticipates Hainan's Tourism Retail and Online Travel Platforms to Gain from China's Strong Tourism Performance
Tourism Growth: China's tourism saw a significant boost during the 2026 New Year holiday, with cross-border trips increasing by 28.6% year-over-year, indicating a trend towards experiential consumption that began in 2025.
Hainan's Retail Industry: BOCI predicts that Hainan's tourism retail sector will experience substantial short-term benefits, while China's online travel platforms are expected to thrive in the long term despite some regional challenges.
Stock Performance Outlook: BOCI maintains an optimistic outlook for TRIP.COM-S, setting a target price of HKD638, and highlights HWORLD-S and CTG DUTY-FREE as strong performers with target prices of HKD39.8 and HKD81, respectively.
Investment Recommendations: All mentioned stocks are rated as "Buy," reflecting confidence in their potential for growth, particularly in the context of increasing outbound travel convenience.
<Study>JPM Ratings and Target Prices for Chinese Hotel Operators (Table)
Investment Ratings for H World Group: H World Group Limited (HTHT.US) is rated as Overweight with a target price increase from US$51 to US$58, while HWORLD-S (01179.HK) also holds an Overweight rating with a target price of HK$40 to HK$45.
Performance of Other Hotel Stocks: Atour Lifestyle Holdings Limited (ATAT.US) is rated Overweight with a target price of US$58, while BTG Hotels (600258.SH) is rated Underweight with a target price of RMB13, and Jin Jiang Hotels (600754.SH) is rated Underweight with a target price of RMB20.
