Macquarie: upgrade target price of HWORLD-S (01179) to 48 Hong Kong dollars, fourth-quarter performance exceeds expectations.

The Macquarie research report indicates that the target price for H World Group Limited Sponsored ADR (HTHT.US) in the Hong Kong stock market has been raised from HK$46 to HK$48, while the target price in the US stock market has been raised from $59 to $62, with a "outperform" rating. H World Group Limited Sponsored ADR's fourth quarter revenue and adjusted EBITDA for 2025 increased by 8.3% and 83% respectively year-on-year, exceeding both the bank's and market expectations. The recovery of revenue per available room is on track. Overseas Revenue per available room (RevPAR) in the quarter increased by 7.4% year-on-year, with the light asset strategy continuing to drive profit margin expansion. Management expects to open approximately 1,600 new hotels in 2026, with revenue expected to increase by 2% to 6%. The company has appointed a new CFO, and operations are running as normal. The bank has raised its 2026 and 2027 net profit forecasts by 2.3% and 1.5% respectively to reflect better-than-expected fourth quarter performance and ongoing cost reduction driven by the light asset transformation strategy.