Event Overview - In H1 2025, the company achieved revenue of 20.703 billion yuan, a decrease of 3.7%, and a net profit attributable to shareholders of 1.759 billion yuan, down 13.7%. The core operating profit was 2.408 billion yuan, down 14.0% [1] - The company plans to distribute an interim dividend of 1.673 billion yuan, equivalent to 0.309 yuan per share, with a payout ratio of 95% [1] Brand Performance - The main brand's table turnover rate declined, with restaurant revenue of 18.580 billion yuan, down 9.0%. The average table turnover rate for self-operated stores was 3.8 times, a decrease of 0.4 times, primarily due to intensified competition in the dining market and changes in consumer demand. The average customer spending was 97.9 yuan, an increase of 0.5% [1] - In H1 2025, the company closed 5 stores while opening 28 (25 self-operated and 3 franchised), resulting in a total of 1,363 stores by the end of June 2025, comprising 1,322 self-operated and 41 franchised stores [1] - The company is focusing on differentiated services through the "Different Haidilao" initiative, which includes themed stores such as specialty product scenes, late-night dining, family interaction, and pet-friendly environments, aiming to improve table turnover rates [1] Multi-Brand Development - In H1 2025, revenue from other restaurant brands was 0.597 billion yuan, an increase of 227.0%. The company operates 14 restaurant brands with a total of 126 stores, including 46 new openings for the Yanjing BBQ brand, bringing the total to 70 stores [1] - Revenue from the takeaway business reached 0.928 billion yuan, up 59.6%, driven by expanding product categories beyond traditional hot pot to include side dishes, mixed rice, and homemade beverages, as well as increased capacity and support from mainstream platforms [1] Cost and Profitability - The core operating profit margin was 11.6%, down 1.4 percentage points. The gross profit margin was 60.2%, a decrease of 0.8 percentage points, mainly due to increased food and material costs to enhance customer experience [2] - Employee cost ratio was 33.8%, up 0.5 percentage points, attributed to a higher proportion of fixed labor costs. Depreciation and amortization expenses accounted for 5.6%, down 0.6 percentage points, while rental and related expenses accounted for 1.0%, up 0.1 percentage points [2] - Other expenses accounted for 5.2%, up 1.1 percentage points, primarily due to increased promotional and support costs related to the takeaway business and more diversified marketing activities [2] Investment Outlook - Given the company's performance in the first half and the overall weak performance of the dining industry, revenue forecasts for 2025-2027 have been adjusted to 43.055 billion, 45.885 billion, and 49.027 billion yuan, respectively. Net profit forecasts for the same period are 4.305 billion, 4.786 billion, and 5.355 billion yuan, respectively [2] - The latest earnings per share (EPS) estimates are 0.77, 0.86, and 0.96 yuan for 2025-2027, with corresponding price-to-earnings (PE) ratios of 18, 16, and 14 times based on the latest stock price [2]

Summary of Haidilao Conference Call Company Overview - **Company**: Haidilao - **Period**: First half of 2025 - **Total Revenue**: 20.703 billion CNY, a decrease of 3.7% year-on-year [2][3] Financial Performance - **Net Profit**: 1.755 billion CNY, down 13.7% year-on-year [3] - **Core Operating Profit**: 2.408 billion CNY, down 15% year-on-year [3] - **Self-operated Restaurant Revenue**: 18.58 billion CNY, accounting for 89.8% of total revenue [8] - **Average Table Turnover Rate**: 3.8 times per day, a decline from the previous year [3] - **Material and Consumable Costs**: 39.8% of revenue, up 0.8 percentage points year-on-year [9] - **Labor Costs**: 33.8% of revenue, up 0.5 percentage points year-on-year [9] - **Total Assets**: 21.115 billion CNY, a decrease of 1.666 billion CNY from the end of 2024 [10] Revenue Breakdown by Region - **First-tier Cities**: 3.161 billion CNY, 17% of total revenue [3] - **Second-tier Cities**: 6.923 billion CNY, 37.3% of total revenue [3] - **Third-tier and Below Cities**: 7.757 billion CNY, 41.8% of total revenue [3] - **Hong Kong, Macau, and Taiwan**: 730 million CNY, 3.9% of total revenue [3] Strategic Initiatives - **Differentiated Services**: Introduction of dedicated customer manager model and themed store renovations to enhance customer experience [2][4] - **Red Pomegranate Plan**: Development of a multi-brand matrix, with 14 other restaurant brands and 126 locations, including Yanching BBQ with nearly 200 million CNY in revenue [5][12] - **Digital Operations**: Implementation of an intelligent management platform to improve operational efficiency and decision-making [2][7] Membership and Franchise Model - **Membership Growth**: Over 200 million members, with initiatives to enhance engagement through updated task systems and cross-industry collaborations [6] - **Franchise Expansion**: 41 franchise stores, utilizing a combination of old and new stores to validate scalability and attract quality franchisees [6] Cost Management - **Raw Material and Consumable Costs**: Increased due to enhanced customer experience initiatives [9] - **Labor Cost Management**: Adjustments made to optimize employee management and control costs in response to new social security policies [20][24] Market Trends and Challenges - **Industry Performance**: Overall restaurant industry growth with challenges in same-store sales for hot pot brands [21][22] - **Consumer Behavior**: Increased demand for differentiated experiences and health-conscious options, with a shift towards online dining [22][23] Future Outlook - **Store Opening Plans**: Anticipation of over 40 new franchise stores in the second half of 2025 [16][17] - **Continued Focus on Digital Transformation**: Ongoing efforts to enhance supply chain and operational efficiency through digital initiatives [20] Conclusion - **Financial Health**: Despite a decline in revenue and profit, the company maintains a strong cash position with 6.017 billion CNY in cash and 5.3 billion CNY in financial products [19] - **Strategic Focus**: Emphasis on customer-centric services, digital transformation, and multi-brand development to navigate competitive pressures and market changes [20][23]

Core Insights - Haidilao reported a revenue of 20.703 billion RMB and a net profit of 1.755 billion RMB for the first half of 2025, indicating challenges in the restaurant industry amid slowing growth and increased competition [1][2]. Financial Summary - Total revenue for the first half of 2025 was 20.703 billion RMB, down from 21.491 billion RMB in 2024, representing a decrease of approximately 3.7% [2]. - Restaurant operating income was 19.177 billion RMB, compared to 20.596 billion RMB in the previous year, reflecting a decline [2]. - The core operating profit was 2.408 billion RMB, down from 2.799 billion RMB in 2024 [2]. - Basic earnings per share were 0.32 RMB, a decrease from 0.38 RMB in the previous year [2]. Industry Context - The overall restaurant industry in China saw a 4.3% year-on-year increase in revenue from January to June, but the growth rate for key enterprises was only 3.6%, with a decline of 0.4% in June [3]. - The China Cuisine Association described the industry's situation as "slowing revenue growth, declining profits, and intensified competition" for the first half of the year [3]. Operational Performance - Haidilao's self-operated restaurant turnover rate was 3.8 times per day, down from 4.2 times in the previous year, with a total customer count of nearly 190 million in the first half of 2025 [5][6]. - The company operated 1,363 restaurants as of mid-2025, an increase from 1,343 in the same period last year, with 1,299 in mainland China and 23 in Hong Kong, Macau, and Taiwan [5][6]. - Haidilao opened 25 new self-operated restaurants and 3 franchise restaurants while closing 33 underperforming locations [5]. Business Highlights - The takeaway business saw a nearly 60% increase in revenue, with "one-person meal" offerings contributing over 55% of takeaway income [6]. - The "Red Pomegranate Plan," launched in August 2024, has been in effect for a year, focusing on incubating internal and external entrepreneurs [7]. - Other restaurant brands under Haidilao, including "Yanjing Barbecue," opened 46 new locations, contributing to a 227% year-on-year increase in "other restaurant income," totaling 597 million RMB [7].

Core Viewpoint - Haidilao's financial performance for the first half of 2025 shows a decline in revenue and profits, indicating challenges in the competitive dining market while also highlighting growth in its second brand and delivery services [1][5][10]. Financial Performance - Total revenue for the first half of 2025 was 20.703 billion RMB, a decrease of 3.7% compared to 2024 [4]. - Core operating profit (non-IFRS) was 2.408 billion RMB, down 14.0% year-on-year [1][4]. - Net profit reached 1.755 billion RMB, reflecting a 13.7% decline from the previous year [1][4]. Restaurant Operations - The overall table turnover rate for self-operated restaurants was 3.8 times per day, with a total customer count of nearly 190 million in the first half of 2025 [6][7]. - The company has closed underperforming restaurants as a strategy to cope with reduced customer traffic [6][7]. - As of June 30, 2025, Haidilao operated 1,363 restaurants, including 1,299 in mainland China and 23 in Hong Kong, Macau, and Taiwan [7]. Brand Expansion and Innovation - Haidilao has launched 126 second brand stores, indicating a focus on diversifying its offerings beyond traditional hotpot [3][8]. - The company has introduced various themed restaurants and products, such as late-night dining options and "one-person meal" delivery services, contributing to a nearly 60% increase in delivery revenue [10][11]. - The "other restaurant income," including second brands, reached 597 million RMB, a significant increase of 227.0% year-on-year [10]. Customer Engagement and Future Strategy - Haidilao has surpassed 200 million members and is expanding member benefits through partnerships with other industries [11]. - The management plans to leverage digital operations and continue diversifying its business strategy, including potential acquisitions of quality assets [11].

Core Insights - The company, Tehai International, reported a revenue of approximately $397 million for the first half of 2025, with a profit attributable to shareholders of $28.35 million, translating to an earnings per share of $0.05 [1] Group 1: Financial Performance - The average table turnover rate for Haidilao restaurants was 3.9 times per day, an increase of 0.1 times compared to the previous year [1] - Same-store revenue grew by 3.0% year-on-year [1] - The operating profit margin at the restaurant level was 6.4%, a decrease of 2.3 percentage points year-on-year, reflecting the company's expected profit-sharing policy and indicating areas for improvement in management precision [1] Group 2: Expansion and Strategy - Tehai International opened 8 new Haidilao restaurants in the first half of 2025 and closed 4 underperforming locations as part of its "Woodpecker Plan" in Southeast Asia and East Asia [1] - As of June 30, 2025, the company operated a total of 126 Haidilao restaurants internationally, with 74 in Southeast Asia, 20 in East Asia, 20 in North America, and 12 in other regions [1] Group 3: Brand Development - The company is steadily advancing its second brand incubation under the "Pomegranate Plan," with other sales revenue reaching $11.5 million, a 25.0% increase from $9.2 million in the same period of 2024 [2] - As of June 30, 2025, Tehai International has opened prototype stores across various categories, including hot pot, barbecue, and fast food, while preparing to offer Chinese, other Asian, and Western fast food options [2]

Core Viewpoint - Haidilao International Holding Ltd. reported a significant decline in net profit for the first half of 2025, indicating challenges in maintaining revenue growth and profitability [1] Financial Performance - Revenue for the first half of 2025 was 20.703 billion yuan, a year-on-year decrease of 3.7% [1] - Net profit fell to 1.755 billion yuan, down 13.7% compared to the previous year [1] - Core operating profit decreased to 2.408 billion yuan, reflecting a 14.0% decline year-on-year [1] - Basic earnings per share were 0.32 yuan, lower than 0.38 yuan in the same period last year [1]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company reported a revenue of 20.703 billion yuan, a decrease of 3.7%, and a net profit attributable to shareholders of 1.759 billion yuan, down 13.7% in H1 2025. The core operating profit was 2.408 billion yuan, a decrease of 14.0%. The company plans to distribute an interim dividend of 1.673 billion yuan, with a payout ratio of 95% [2] - The main brand's table turnover rate has declined, but differentiated services are expected to drive a recovery in turnover rates. The company has implemented the "Different Haidilao" plan to enhance customer experience and introduce themed stores [3] - The company is steadily advancing multi-brand development and focusing on the takeaway business, with takeaway revenue increasing by 59.6% in H1 2025 [4] - The cost-to-revenue ratio has increased, putting pressure on the core operating profit margin, which was 11.6%, down 1.4 percentage points [5] - Due to the company's performance in the first half of the year and the overall weak performance of the restaurant industry, the profit forecast has been revised downwards for 2025-2027 [6] Summary by Sections Financial Performance - In H1 2025, the company achieved a revenue of 20.703 billion yuan, a decrease of 3.7%, and a net profit of 1.759 billion yuan, down 13.7%. The core operating profit was 2.408 billion yuan, a decrease of 14.0% [2] - The company plans to distribute an interim dividend of 1.673 billion yuan, with a payout ratio of 95% [2] Brand and Service Strategy - The main brand's revenue was 18.580 billion yuan, down 9.0%, with an average table turnover rate of 3.8 times, a decrease of 0.4 times. The company has closed 5 stores and opened 28 stores, resulting in a total of 1,363 stores by the end of June 2025 [3] - The company is focusing on differentiated services and has launched the "Different Haidilao" initiative to enhance customer experience [3] Multi-Brand and Takeaway Business - The revenue from other restaurant brands was 0.597 billion yuan, an increase of 227.0%. The company operates 14 restaurant brands with a total of 126 stores [4] - Takeaway revenue reached 0.928 billion yuan, an increase of 59.6%, driven by product diversification and capacity enhancement [4] Cost and Profitability - The core operating profit margin was 11.6%, down 1.4 percentage points, with a gross margin of 60.2%, down 0.8 percentage points [5] - Employee cost ratio increased to 33.8%, and other expenses related to takeaway business have also risen [5] Profit Forecast - The revenue forecasts for 2025-2027 are adjusted to 43.055 billion yuan, 45.885 billion yuan, and 49.027 billion yuan, respectively. The net profit forecasts are adjusted to 4.305 billion yuan, 4.786 billion yuan, and 5.355 billion yuan, respectively [6]

Core Insights - Haidilao International Holding Ltd. reported a revenue of 20.703 billion yuan and a net profit of 1.755 billion yuan for the first half of 2025, with a core operating profit of 2.408 billion yuan [1] Group 1: Restaurant Performance - The overall table turnover rate for self-operated restaurants was 3.8 times per day, with the same-store turnover rate also at 3.8 times per day, serving nearly 190 million customers in the first half of 2025 [1] - There was a decline in table turnover rate and customer traffic due to intensified competition in the dining market and changes in consumer demand [1] - As of June 30, 2025, Haidilao operated a total of 1,363 restaurants, opening 25 self-operated and 3 franchised restaurants during the first half of the year [1] Group 2: Franchise and Business Model - Since opening franchises in 2024, Haidilao has validated the feasibility of its "old store + new store" franchise model and has accumulated quality franchisee resources [2] - The company aims to maintain brand consistency across franchise and self-operated stores while focusing on quality and steady progress [2] - The "Red Pomegranate Plan" will support the development of multiple brands alongside the main brand [2] Group 3: Revenue Growth and New Offerings - Haidilao's takeaway business saw a nearly 60% increase in revenue, with "one-person meal" offerings contributing over 55% of takeaway revenue [2] - The company is testing new takeaway categories such as rice bowls and self-made beverages, aiming to create a "super kitchen" for takeaway services [2] - The revenue from other restaurant brands, including "Yanjing Barbecue" and "Xiangqian Yinxing," reached 597 million yuan, a year-on-year increase of 227% [2] Group 4: Membership and Strategic Initiatives - As of June 30, 2025, Haidilao's membership exceeded 200 million, with plans for cross-industry collaborations to enhance member benefits [3] - The company is committed to maintaining the fairness of its membership system by combating non-compliant use of member rights [3] - Haidilao is strategically seeking to acquire quality assets to enrich its restaurant business and customer base [3]

里昂发表报告指，海底捞上半年净利润按年下降14%，但符合市场预期，平均客单价小幅上升及低线城 市翻桌率表现超预期成为亮点。该行认为，通过优化员工排班及转向特许经营模式，有望提升营运效 率。公司派息比率维持在95%。该行将海底捞2025年净利润预测下调11%以反映盈利能力下降，但2026 年及2027年预测保持不变。该行对其目标价从15港元小幅上调至16港元，维持"跑赢大市"评级。 ...

Core Viewpoint - Haidilao demonstrates resilience in a challenging hot pot industry, achieving stable profitability and significant revenue growth through innovation and a multi-brand strategy [1][5]. Financial Performance - For the first half of 2025, Haidilao reported revenue of 20.703 billion yuan, with a core operating profit of 2.408 billion yuan and a net profit of 1.76 billion yuan, translating to profit margins of 11.63% and 8.5%, respectively, both exceeding industry peers [1]. - The company declared an interim dividend of 0.338 HKD per share, with a payout ratio of 96.6% and a dividend yield (TTM) exceeding 6% [1][5]. Business Strategy - Haidilao is actively exploring innovative hot pot scenarios, developing unique products, optimizing store operations, and enhancing supply chain and digital capabilities [1]. - The company is advancing its multi-brand strategy, with the "Pomegranate Plan" being a key initiative aimed at creating new growth avenues [1][3]. Operational Insights - Restaurant operations remain the core business, generating 18.58 billion yuan in revenue, accounting for 89.8% of total income, while other business segments, including takeout and other restaurant operations, saw revenue growth rates of 59.7% and 227%, respectively [1][2]. - The company operates 1,363 restaurants and has closed underperforming locations as part of its "Woodpecker Plan," while also opening 25 self-operated and 3 franchised restaurants in the first half of 2025 [2]. Multi-Brand Development - The "Pomegranate Plan" has led to the establishment of 14 new restaurant brands, with a total of 126 locations, significantly contributing to revenue growth [3]. - Haidilao's robust supply chain supports rapid brand incubation and development, allowing for lower costs and higher success rates for new ventures [3][4]. Market Outlook - The multi-brand strategy is expected to expand growth potential and create a second growth curve, which may lead to a revaluation of the company's stock [4][5]. - Analysts are optimistic about Haidilao's multi-brand development, with target prices exceeding 20 HKD, reflecting confidence in the company's growth trajectory and high dividend yield appealing to value investors [5].