Macquarie has increased the target price for H World Group-S (01179) to HK$48 from HK$46 and for H World Group (HTHT.US) to $62 from $59, maintaining an "Outperform" rating. The company's revenue and adjusted EBITDA for the fourth quarter of 2025 grew by 8.3% and 83% year-on-year, respectively, exceeding both the bank's and market expectations. Revenue per available room (RevPAR) recovery remains on track. During the period, overseas RevPAR increased by 7.4% year-on-year, while the capital-light strategy continued to drive margin expansion. Management expects to open approximately 1,600 new hotels in 2026, with projected revenue growth between 2% and 6%. The company has appointed a new CFO, with operations proceeding as usual. Macquarie has raised its net profit forecasts for 2026 and 2027 by 2.3% and 1.5%, respectively, reflecting the better-than-expected Q4 performance and ongoing cost reductions driven by the asset-light transition strategy.