HTHT

H World (formerly Huazhu) is China's leading economy-and-midscale hotel operator, and the underlying fundamentals are strong. FY2025 revenue grew 10.5% to $3.62B, operating income jumped 36.7% to $975M, and net income surged 73.7% to $726M. Operating cash flow rose 16.3% to $1.20B and cash climbed 45.0% to $1.49B, while long-term debt was cut 89.1% to $68.0M. Returns are robust given the asset-light franchising model, and the profit trajectory is clearly improving.

The caution is in the valuation lens, which the provided data renders unreliable. The headline P/E of 184.8 and P/S of 36.1 are computed off a share count (3.07B ordinary shares) that does not reconcile with the ADS the stock actually trades as, producing an implausible $131B market cap for a company with $3.62B of revenue and $726M of net income. Because the price-to-fundamentals relationship cannot be trusted from this data, I cannot responsibly assign a price target or make a valuation-driven buy/sell call.