HK Stock Market Move | HWORLD-S(01179) rose nearly 4%, store openings continued to increase, institutions are optimistic about the company meeting fourth-quarter revenue guidance.

Hworld-S (01179) rose nearly 4% during trading, and at the time of writing, it had risen 3.57% to HK$24.65 with a turnover of HK$40.044 million. On the news side, Guoyuan International's previous research report pointed out that in the face of the industry's generally high base and the impact of closing inefficient domestic stores, Huazhu Group's overall and domestic business revenues in the third quarter increased by 2.4% and 1% respectively year-on-year, achieving the lower end of the management's revenue growth target. The management has given a revenue guidance for 4Q24, with overall and domestic business revenues expected to increase by 1%-5% year-on-year, implying an annual revenue growth rate in the range of 7.4%-8.5%. The bank believes that the company's certainty in achieving the 4Q24 revenue target is relatively high. Sinolink stated that the quarterly new openings continued to maintain a high level and adhere to high-quality development. In Q3, the company opened 790 new stores with a net increase of 559, maintaining the fast pace of store openings. They have completed 88% of their annual plan to open 2,200 new stores in the first three quarters. In terms of brands, they released Juzi Crystal 2.5 and plan to expand into the mid-to-high-end market while serving the mass market. Short-term pressure on RevPAR is expected to improve in Q4, and long-term prospects are positive for lean growth, excellent service strategies for moderate RevPAR growth, and continued store expansion support.