1179:HKEXH World Group Limited Analysis
Data as of 2026-05-21 - not real-time
HK$35.74
Latest Price
4/10Risk
Risk Level: Medium
Executive Summary
H World Group is trading just above its identified support level and below the 20‑day simple moving average, with the 14‑day RSI hovering in the mid‑30s, suggesting modest oversold pressure. The MACD remains in bearish territory, while the beta of roughly 0.3 points to limited price sensitivity to broader market moves, yet 30‑day volatility remains elevated at over 30%, indicating a choppy short‑term environment.
Fundamentally, the company posted double‑digit revenue growth and maintains healthy gross and operating margins, complemented by an impressive ROE near 46% and a dividend yield exceeding 4.5% with a payout ratio comfortably below 40%. The discounted cash‑flow model places fair value a few cents above the current price, and analysts collectively rate the stock as a strong buy, underscoring the upside potential ahead of the upcoming first‑quarter earnings release.
Fundamentally, the company posted double‑digit revenue growth and maintains healthy gross and operating margins, complemented by an impressive ROE near 46% and a dividend yield exceeding 4.5% with a payout ratio comfortably below 40%. The discounted cash‑flow model places fair value a few cents above the current price, and analysts collectively rate the stock as a strong buy, underscoring the upside potential ahead of the upcoming first‑quarter earnings release.
Market Outlook
Short Term
< 1 yearPositive
Model confidence: 6/10
Key Factors
- Proximity to support and modest oversold RSI
- High dividend yield offering immediate return
- Upcoming earnings release could catalyze price movement
Medium Term
1–3 yearsPositive
Model confidence: 7/10
Key Factors
- Sustained revenue growth and strong profitability margins
- Undervalued DCF estimate relative to market price
- Robust cash flow supporting dividend sustainability
Long Term
> 3 yearsNeutral
Model confidence: 5/10
Key Factors
- High debt‑to‑equity ratio adds balance‑sheet risk
- Cyclical nature of the lodging industry and potential regulatory shifts in China
- Long‑term brand diversification and expansion opportunities
Key Metrics & Analysis
Financial Health
Revenue Growth11.10%
Profit Margin19.31%
P/E Ratio19.6
ROE46.36%
ROA7.18%
Debt/Equity322.12
P/B Ratio8.7
Op. Cash FlowHK$8.0B
Free Cash FlowHK$6.5B
Technical Analysis
TrendNeutral
RSI35.0
SupportHK$34.90
ResistanceHK$41.72
MA 20HK$37.98
MA 50HK$39.72
MA 200HK$35.17
MACDBearish
VolumeStable
Fear & Greed Index90.09
Valuation
Fair ValueHK$36.52
Target PriceHK$47.06
Upside/Downside31.67%
GradeUndervalued
TypeBlend
Dividend Yield4.58%
Risk Assessment
Beta0.30
Volatility33.94%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskLow
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.