Investment Rating - The report maintains a BUY rating for Haidilao with a target price of HK$ 15.94, down from the previous target price of HK$ 21.52, reflecting a 20% upside from the current price of HK$ 13.28 [2][3][8]. Core Views - Haidilao's 1H24 results were roughly in line with expectations, showing a 14% year-on-year increase in sales, but net profit dropped by 10% year-on-year due to higher staff costs [6][2]. - The company is expected to face challenges in 2H24, including macroeconomic pressures and high staff costs, but potential upside could come from new store openings and initiatives from the new CEO to improve margins [2][6]. - The report highlights Haidilao's strong recovery in same-store sales growth (SSSG), outperforming the catering industry, driven by superior customer service and effective marketing strategies [2][6]. Financial Summary - Revenue is projected to grow from RMB 41,453 million in FY23A to RMB 47,309 million in FY24E, representing a 14.1% year-on-year growth [3][11]. - Net profit is expected to increase from RMB 4,495.4 million in FY23A to RMB 4,627.2 million in FY24E, reflecting a 2.4% year-on-year growth [3][11]. - The gross profit margin is anticipated to improve to 60.1% in FY24E, up from 59.2% in FY23A, aided by lower input costs and improved supply chain efficiency [7][11]. Earnings Revision - The report revises net profit forecasts for FY24E, FY25E, and FY26E down by 7%, 1%, and up by 4% respectively, primarily due to higher staff costs but better gross profit margins [7][2]. - The diluted EPS for FY24E is adjusted to RMB 0.827, down from RMB 0.893, reflecting a 7.4% decrease [7][2]. Store Expansion and Initiatives - Haidilao aims to increase its number of stores by a mid-single-digit percentage in FY24E, with plans to open 400 to 500 stores under the new Yanqing Barbecue Shop brand over the next three years [2][10]. - The "Red pomegranate" project is highlighted as a key multi-brand development strategy, which is crucial for the company's future growth [2][10]. Valuation Metrics - The stock is currently trading at a P/E ratio of 15x for FY24E, which is considered not too demanding, especially with a dividend yield of 6% [2][3]. - The report notes that Haidilao's P/B ratio is projected to be 3.3x for FY24E, with a return on equity (ROE) of 29.2% [3][8].

Investment Rating - The report maintains a "Buy" rating for Haidilao with a target price of HKD 20.8, indicating a potential upside of 58% from the current stock price [1][2][4]. Core Insights - Haidilao's revenue for the first half of 2024 reached HKD 21.5 billion, representing a year-on-year increase of 13.8%, while net profit was HKD 2.03 billion, down 10%. However, core net profit grew by 13% to HKD 2.8 billion [1][2]. - The company has slightly adjusted its net profit forecasts for 2024, 2025, and 2026 to HKD 4.63 billion, HKD 5.12 billion, and HKD 5.42 billion respectively, with corresponding EPS of HKD 0.91, HKD 1.01, and HKD 1.07 [1][2]. Summary by Sections Financial Performance - As of June 2024, Haidilao operated 1,343 stores, with a net decrease of 31 stores in the first half of the year due to closures of underperforming locations [1]. - The overall table turnover rate improved to 4.2 times per day, a 27% increase year-on-year, returning to levels seen in 2019 despite a 75% increase in store count since then [1]. - The core profit margin remained stable at 13%, with a gross margin of 61%, up 1.7 percentage points due to lower raw material costs [1][2]. Strategic Initiatives - The company is launching the "Pomegranate Plan" to foster a second growth curve through the incubation of new brands and businesses, led by the CEO's innovation committee [2]. - Haidilao continues to implement a high dividend policy, declaring an interim dividend of HKD 0.391 per share, with a payout ratio of 94% and an expected dividend yield of over 5% [2]. Valuation Analysis - The report employs comparable company analysis and DCF methods for valuation, estimating a target price of HKD 20.8 based on a 20x PE ratio for 2024 and a DCF valuation yielding a price of HKD 21.4 [8][10].

Investment Rating - The report assigns a "Buy" rating to Haidilao (6862) [2] Core Views - Despite weak demand and consumption downgrade trends, Haidilao's stable operations and superior dividend payout ratio justify a higher valuation multiple of 18x PE compared to the industry average of 13x PE [4] - The target price is revised downward to RMB 14.53 (-22%), equivalent to HKD 15.89, while maintaining the "Buy" rating [4] - Haidilao's H1 2024 revenue reached RMB 21.491 billion, a 14% YoY increase, with net profit attributable to shareholders declining by 9.7% to RMB 2.038 billion [4] - Excluding tax credits and exchange gains/losses (approximately RMB 400 million), core business profit is estimated to have grown 13% YoY, aligning with the company's disclosed Non-GAAP core operating profit growth [4] Operational Performance - Turnover rates continue to recover across all store tiers: Tier 1/Tier 2/Tier 3 & below/overseas/overall at 4/4.3/4.1/4.2/4.2, showing YoY increases of 18%/23%/28%/2%/24% respectively [4] - Same-store sales growth varies significantly by region: +11%/-48%/+20%/+2%/+15% for Tier 1/Tier 2/Tier 3 & below/overseas/overall respectively [4] - Average customer spending shows a downward trend across all regions, with overall spending down 5.3% YoY [4] - Store network strategy shifts towards Tier 2 and 3 cities, with net store openings of -12/+9/+13/+10/+1/+11 in Tier 1/Tier 2/Tier 3 & below/overseas/overall respectively [4] Financial Performance - Revenue breakdown: Restaurant operations (+13.8%), other restaurants (+74.3%), delivery (+23.3%), and condiment/ingredient sales (-19.2%) [4] - Cost structure: Raw materials (39%), staff costs (33.3%), property rental (1%), depreciation (6.2%), and utilities (3.4%) [4] - Staff costs increased due to higher headcount per store (from 99 to 106 employees) and increased promotional activities [4] Financial Projections - 2024-2026 net profit forecasts revised to RMB 4.5/5.0/5.4 billion, with EPS of RMB 0.81/0.90/0.98 [4] - Revenue projections: 2024E RMB 44.960 billion (+8.46%), 2025E RMB 49.071 billion (+9.15%), 2026E RMB 51.580 billion (+5.11%) [5] - PE ratios: 2024E 14.81x, 2025E 13.38x, 2026E 12.28x [5] Market Data - Current share price: HKD 13.12 [3] - 52-week price range: HKD 11.80-22.10 [6] - Current market capitalization: HKD 73.131 billion [6]

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [2][5][15] Core Views - The company achieved a record high in both revenue and core operating profit for H1 2024, with revenue of 21.49 billion RMB, up 13.8% year-on-year, and core operating profit of 2.799 billion RMB, up 13.0% year-on-year, aligning with expectations [6][11] - The "Red Pomegranate Plan" aims to encourage the incubation of new brands, with several new projects launched, indicating a strategic shift towards brand diversification [14][15] - The company announced an increase in the interim cash dividend payout ratio to 95%, enhancing its investment attractiveness [15] Financial Forecasts and Key Metrics - Revenue forecasts for 2024-2026 are adjusted to 46.2 billion RMB, 51.2 billion RMB, and 56.2 billion RMB, reflecting a growth rate of 3%, 11%, and 10% respectively [15][17] - The company’s net profit margin for H1 2024 was 9.48%, with a core operating profit margin of 13.02%, indicating stable profitability [11][17] - The average table turnover rate improved to 4.2 times in H1 2024, an increase of 0.9 times year-on-year, with a notable recovery in lower-tier cities [7][8] Business Performance - The company operated 1,343 restaurants as of June 30, 2024, a decrease of 39 locations, but new openings showed a high success rate with a turnover rate of 4.6 for new stores compared to 4.2 for existing ones [6][11] - The average customer spending decreased to 97.4 RMB, down 5%, as the company adapted to the current consumption environment by offering more value-oriented products [7][11] - Same-store sales growth for H1 2024 was 15.3%, with significant growth in lower-tier cities [8][11]

Investment Rating - The report maintains a "Buy" rating for Haidilao (6862 HK) [4][6] Core Views - Haidilao's 2024 H1 revenue reached RMB 21 491 billion, up 13 8% YoY, while net profit attributable to shareholders declined 9 7% YoY to RMB 2 038 billion [4] - The company's overall and same-store turnover rates improved to 4 2 times/day, up 0 9 and 0 8 times/day YoY respectively [4] - Haidilao's "Pomegranate Plan" aims to open 400-500 new stores for its "Yanqing BBQ" brand within 3 years, representing a strategic shift in brand expansion [5] - The multi-store management model has been implemented, with over 100 store managers overseeing more than 200 stores as of July [5] Financial Performance - Haidilao's 2024 H1 gross margin improved due to lower raw material costs, while employee costs increased as a percentage of revenue [5] - The company's net profit margin declined 2 5 percentage points YoY to 9 5%, impacted by unfavorable exchange rate movements and the expiration of tax incentives [5] - Revenue breakdown for 2024 H1: Haidilao restaurants (RMB 204 14 billion, +14% YoY), other restaurants (RMB 1 82 billion, +74% YoY), delivery (RMB 5 81 billion, +23% YoY), and condiments/ingredients (RMB 2 99 billion, -19% YoY) [4] Market Data - Haidilao's current market capitalization stands at HKD 68 783 billion, with a total of 5 574 billion shares outstanding [2] - The stock's 1-year performance shows a 37 10% relative decline and a 39 52% absolute decline [3] Future Projections - Revenue forecasts for 2024-2026 are adjusted to RMB 46 020 billion, RMB 50 494 billion, and RMB 54 284 billion respectively [7] - Net profit projections for 2024-2026 are revised to RMB 4 469 billion, RMB 5 106 billion, and RMB 5 565 billion [7] - The current PE ratio stands at 14x for 2024, with projected EPS of RMB 0 80, RMB 0 92, and RMB 1 00 for 2024-2026 [6] Operational Highlights - Haidilao operated 1,343 stores as of 2024 H1, with 1,320 in mainland China and 23 in Hong Kong, Macau, and Taiwan [4] - Same-store sales growth varied by region: tier 1 cities (+11%), tier 2 cities (+14%), tier 3 and below cities (+20%), and Hong Kong/Macau/Taiwan (+2%) [4] - Average customer spending decreased by RMB 5 5 to RMB 97 4, with regional variations: tier 1 cities (-RMB 6 2), tier 2 cities (-RMB 5 0), tier 3 and below cities (-RMB 4 7), and Hong Kong/Macau/Taiwan (-RMB 7 8) [4]

Investment Rating - The report maintains a "Recommend" rating for Haidilao (06862 HK) with a target price of HKD 17 32, compared to the current price of HKD 12 34 [1] Core Views - Haidilao demonstrated strong performance resilience in H1 2024, with revenue reaching RMB 21 49 billion (yoy +13 8%) and core operating profit at RMB 2 799 billion (yoy +13%) [1] - The company maintained a high dividend payout, with an EPS of RMB 0 38 and a dividend per share of RMB 0 358 [1] - Haidilao continued to streamline its store network, opening 11 new stores and closing 43 stores, resulting in a total of 1,343 stores by the end of H1 2024 [2] - The company's same-store turnover rate improved significantly, with an overall rate of 4 2 times (up from 3 3 times in the same period last year) [2] - Despite a decline in average customer spending (RMB 97 4, yoy -5 3%), cost optimization efforts led to a reduction in food costs as a percentage of revenue (-1 7pct to 39%) [2] Financial Performance - Haidilao's operating income for 2024E is projected to be RMB 49 798 billion, with a yoy growth of 19 6% [3] - Net profit attributable to shareholders is expected to be RMB 4 461 billion in 2024E, with a slight yoy decline of 0 9% [3] - The company's EPS for 2024E is forecasted at RMB 0 80, with a P/E ratio of 14x [3] - Haidilao's gross margin for 2024E is estimated at 11 5%, while the net margin is projected at 9 0% [7] Operational Highlights - Haidilao's management focused on optimizing customer satisfaction and implemented a multi-store management model, allowing store managers to oversee multiple locations [2] - The company launched the "Red Pomegranate Plan" to develop new restaurant brands, resulting in the creation of 5 new brands in H1 2024, covering categories such as BBQ, hotpot, and Chinese fast food [2] - Same-store turnover rates improved across all city tiers, with tier-1 cities increasing by 0 6 times, tier-2 cities by 0 8 times, and tier-3 and below cities by 0 9 times [2] Valuation and Forecast - The report forecasts Haidilao's EPS for 2024-2026 at RMB 0 80, RMB 0 92, and RMB 1 01, respectively, with corresponding P/E ratios of 14x, 12x, and 11x [2] - The target price of HKD 17 32 is based on a 2024E P/E multiple of 20x [2]

浦银国际研究 公司研究 | 消费行业 浦银国际 公司研究 25 20 15 10 | --- | --- | |------------------------------------------------------------------------------------------------------------|----------------------| | | 02/2024 05/2024 | | | 、浦银国际 | | | 扫码关注浦银国际研究 | | 本研究报告由浦银国际证券有限公司分析师编制，请仔细阅读本报告最后部分的分析师披露、商业关系披露及免责声明。 | | 林闻嘉 首席消费分析师 richard_lin@spdbi.com (852) 2808 6433 桑若楠，CFA 消费分析师 serena_sang@spdbi.com (852) 2808 6439 2024 年 8 月 28 日 海底捞（6862.HK）：品牌力与翻台率保持 强劲，但五大担忧令我们维持谨慎态度 在餐饮行业面临较大挑战的情况下，海底捞 1H24 翻台率同比大幅提升 至 4.2x，毛利率同比扩张 1.7 ...

港股通 1H24 翻台显著提升，多举措降本提效 | --- | --- | |-----------------------------|-------| | 华泰研究 中报点评 | | | 2024 年 8 月 28 日│中国香港 | 餐饮 | 研究员 樊俊豪 SAC No. S0570524050001 fanjunhao@htsc.com SFC No. BDO986 +(852) 3658 6000 研究员 曾珺 SAC No. S0570523120004 zengjun@htsc.com SFC No. BTM417 +(86) 21 2897 2228 研究员 梅昕 SAC No. S0570516080001 meixin@htsc.com SFC No. BQE385 +(86) 21 2897 2080 1H24 营收增速符合预期，宣派中期股息增厚股东回报 海底捞 1H24 海底捞收入 214.91 亿/yoy+13.8%，收入端符合我们前瞻预期 （208-217 亿）；录得归母净利 20.38 亿，归母净利润 9.5%/同比-2.5pct， 主因受汇兑损益变动及 VAT 减免优惠政策取消 ...

Financial Performance - Revenue for the first half of 2024 reached RMB 21,490.9 million, a 13.8% increase compared to the same period in 2023[4] - Core operating profit (non-IFRS measure) for the first half of 2024 was RMB 2,798.9 million, up 13.0% year-over-year[4] - The company's net profit for the first half of 2024 was RMB 2,033.1 million, a 10.0% decrease compared to the same period in 2023[4] - Revenue increased by 13.8% from RMB 18,885.9 million in H1 2023 to RMB 21,490.9 million in H1 2024[6] - Net profit decreased from RMB 2,258.9 million in the six months ended June 30, 2023, to RMB 2,033.1 million in the same period in 2024[25] - Core operating profit (non-IFRS measure) increased from RMB 2,476.4 million in the six months ended June 30, 2023, to RMB 2,798.9 million in the same period in 2024[26] - Revenue for the six months ended June 30, 2024, is RMB 21,490.9 million, a 13.8% increase compared to RMB 18,885.9 million in the same period in 2023[38] - Net profit for the six months ended June 30, 2024, is RMB 2,033.1 million, a decrease of 10.0% compared to RMB 2,258.9 million in the same period in 2023[38] - Basic earnings per share for the six months ended June 30, 2024, is RMB 0.38, compared to RMB 0.42 in the same period in 2023[39] - Total revenue for the six months ended June 30, 2024, was RMB 21,490.9 million, compared to RMB 18,885.9 million for the same period in 2023, representing a 13.8% increase[46] - Restaurant business revenue for the six months ended June 30, 2024, was RMB 20,596.4 million, up 14.2% from RMB 18,040.0 million in the same period in 2023[46] - Delivery business revenue for the six months ended June 30, 2024, was RMB 581.2 million, a 23.3% increase from RMB 471.4 million in the same period in 2023[46] - Revenue from Mainland China accounted for RMB 20,760.6 million (96.6% of total revenue) for the six months ended June 30, 2024, up 14.2% from RMB 18,182.3 million in the same period in 2023[48] - Basic earnings per share for the six months ended June 30, 2024, were RMB 2,038,125 thousand, compared to RMB 2,258,052 thousand in the same period in 2023[54] Restaurant Operations - The average table turnover rate for Haidilao restaurants in the first half of 2024 was 4.2 times per day, up from 3.3 times per day in the same period in 2023[3] - The company served over 209.9 million customers in the first half of 2024[4] - Haidilao opened 11 new restaurants and closed 43 underperforming restaurants in the first half of 2024, resulting in a total of 1,343 restaurants as of June 30, 2024[4] - As of June 30, 2024, Haidilao operated 1,320 restaurants in Mainland China and 23 in the Hong Kong, Macau, and Taiwan regions[4] - Haidilao restaurant operations accounted for 95.0% of total revenue, with a 13.8% increase from RMB 17,935.4 million in H1 2023 to RMB 20,414.0 million in H1 2024[8] - Average table turnover rate increased from 3.3 times/day in H1 2023 to 4.2 times/day in H1 2024[8] - Same-store sales in first-tier cities increased to RMB 3,502,065 thousand, up 11.3% YoY[12] - Same-store sales in second-tier cities rose to RMB 7,632,547 thousand, up 13.9% YoY[12] - Same-store sales in third-tier and below cities grew to RMB 7,836,184 thousand, up 19.9% YoY[12] - Total same-store sales reached RMB 19,605,740 thousand, up 15.3% YoY[12] - Average daily sales per same-store in first-tier cities increased to RMB 88.6 thousand, up 10.5% YoY[12] Customer Metrics - Customer spending per capita decreased to RMB 97.4 in the first half of 2024, down from RMB 102.9 in the same period in 2023[3] - Customer per capita spending decreased from RMB 102.9 in H1 2023 to RMB 97.4 in H1 2024[8] Expansion and New Formats - The company plans to significantly increase the number of new restaurant openings in the second half of 2024 compared to the first half[4] - The company introduced a franchise model to expand coverage and enter lower-tier markets[5] - The "Red Pomegranate Plan" was launched to incubate and develop new dining brands, with 5 projects in operation in H1 2024[6] - New dining formats such as camping hotpot, campus hotpot, and corporate hotpot were introduced to diversify customer experience[6] - Haidilao's new brands, such as "Yanqing BBQ Shop" and "Xiao Hi Hotpot," are targeting different price segments and consumer groups[6] Costs and Expenses - Employee costs increased by 24.0% to RMB 7,155.7 million, accounting for 33.3% of revenue[16] - Raw material and consumables costs rose by 9.1% to RMB 8,387.2 million, but decreased as a percentage of revenue to 39.0%[15] - Depreciation and amortization decreased by 11.1% to RMB 1,339.1 million, accounting for 6.2% of revenue[20] - Other expenses increased by 28.9% to RMB 881.1 million, mainly due to increased marketing activities[21] - Financial costs decreased by 23.2% to RMB 140.5 million, driven by reduced interest on bank borrowings and lease liabilities[24] - Income tax expenses increased by 54.1% from RMB 554.9 million in the six months ended June 30, 2023, to RMB 855.0 million in the same period in 2024, primarily due to higher tax losses utilized in the previous year[25] - Employee costs for the six months ended June 30, 2024, increased to RMB 7,155,747 thousand from RMB 5,769,263 thousand in the same period in 2023[52] - Depreciation and amortization expenses for the six months ended June 30, 2024, were RMB 1,339,057 thousand, down from RMB 1,506,422 thousand in the same period in 2023[52] - Financial costs for the six months ended June 30, 2024, totaled RMB 140,504 thousand, a decrease from RMB 183,021 thousand in the same period in 2023[51] - Tax expenses for the six months ended June 30, 2024, amounted to RMB 854,957 thousand, compared to RMB 554,930 thousand in the same period in 2023[51] Cash Flow and Financial Position - Cash and cash equivalents increased from RMB 6,475.5 million as of December 31, 2023, to RMB 8,424.9 million as of June 30, 2024, driven by operating activities[29] - Inventory decreased from RMB 1,074.6 million as of December 31, 2023, to RMB 818.9 million as of June 30, 2024, with inventory turnover days decreasing from 23.9 days to 20.4 days[31] - Trade receivables decreased from RMB 412.0 million as of December 31, 2023, to RMB 278.6 million as of June 30, 2024, with turnover days decreasing from 3.2 days to 2.9 days[32] - Trade payables decreased from RMB 1,859.4 million as of December 31, 2023, to RMB 1,470.7 million as of June 30, 2024, with turnover days increasing from 34.3 days to 35.9 days[33] - Bank borrowings as of June 30, 2024, amounted to RMB 294.4 million, with new loans of RMB 50.0 million and repayments of RMB 379.7 million during the six-month period[33] - The company held time deposits with initial maturities exceeding 3 months of RMB 3,256.8 million as of June 30, 2024, with total bank balances and cash amounting to RMB 11,681.7 million[29] - Right-of-use assets recognized under IFRS 16 amounted to RMB 3,207.9 million as of June 30, 2024[30] - Capital-to-debt ratio as of June 30, 2024, is 24.6%[34] - Total assets as of June 30, 2024, are RMB 25,372.7 million, compared to RMB 24,677.0 million as of December 31, 2023[40] - Total liabilities as of June 30, 2024, are RMB 15,833.5 million, compared to RMB 13,160.1 million as of December 31, 2023[41] - Non-current assets as of June 30, 2024, were RMB 6,825.2 million, a decrease of 13.0% from RMB 7,844.5 million as of December 31, 2023[48] - Interest income for the six months ended June 30, 2024, was RMB 244.8 million, an 83.8% increase from RMB 133.1 million in the same period in 2023[49] - Government subsidies for the six months ended June 30, 2024, were RMB 23.0 million, a 31.6% decrease from RMB 33.6 million in the same period in 2023[49] - Net impairment losses reversed for the six months ended June 30, 2024, were RMB 30.6 million, compared to a net impairment loss of RMB 11.5 million in the same period in 2023[50] - Exchange loss for the six months ended June 30, 2024, was RMB 25.9 million, compared to an exchange gain of RMB 192.5 million in the same period in 2023[50] - Dividends declared for the six months ended June 30, 2024, were RMB 4,061,454 thousand, significantly higher than RMB 570,479 thousand in the same period in 2023[52] - The company purchased property, plant, and equipment worth RMB 400,465 thousand during the six months ended June 30, 2024, up from RMB 91,044 thousand in the same period in 2023[55] - Impairment losses on property, plant, and equipment for the six months ended June 30, 2024, were RMB 18,618 thousand, compared to RMB 24,048 thousand in the same period in 2023[57] - Impairment losses on right-of-use assets for the six months ended June 30, 2024, were RMB 20,094 thousand, compared to RMB 7,267 thousand in the same period in 2023[57] - Trade receivables decreased to RMB 278,608 thousand as of June 30, 2024, from RMB 411,995 thousand as of December 31, 2023, a decline of 32.4%[58] - Total trade and other receivables and prepayments decreased to RMB 1,480,897 thousand as of June 30, 2024, from RMB 2,028,657 thousand as of December 31, 2023, a decline of 27.0%[58] - Trade payables within 60 days decreased to RMB 1,384,470 thousand as of June 30, 2024, from RMB 1,784,199 thousand as of December 31, 2023, a decline of 22.4%[59] - Employee cost payables decreased to RMB 1,689,900 thousand as of June 30, 2024, from RMB 1,749,831 thousand as of December 31, 2023, a decline of 3.4%[59] - The company repurchased USD 11.5 million of its 2026 senior notes in April 2024 at a cost of USD 10,795,120, reducing the outstanding principal to USD 285.48 million[60] - As of June 30, 2024, the company had utilized HKD 7,072.9 million of the global offering proceeds, representing 96.9% of the total, with HKD 226.4 million remaining[62] - The company allocated 60.0% of the global offering proceeds (HKD 4,379.5 million) to expansion plans, which have been fully utilized as of June 30, 2024[63] - As of June 30, 2024, the company had utilized HKD 1,545.6 million of the 2021 placement proceeds, representing 66.1% of the total, with HKD 791.4 million remaining[64][65] - The company expects to utilize the remaining HKD 791.4 million from the 2021 placement proceeds by the end of 2026, subject to market conditions and business needs[66] Dividends and Shareholder Returns - The company declared an interim dividend of HKD 0.391 per share for the first half of 2024[3] - The company announced an interim dividend of HKD 0.391 per share (equivalent to RMB 0.358) for shareholders on the register as of September 16, 2024, totaling HKD 2,117,265 thousand (equivalent to RMB 1,938,570 thousand)[53] - The company has declared an interim dividend of HKD 0.391 per share (equivalent to CNY 0.358) for the six months ending June 30, 2024, payable to shareholders registered by September 16, 2024[68] - The interim dividend is expected to be paid on or before October 2, 2024, calculated based on the average benchmark exchange rate of CNY to HKD published by the People's Bank of China five working days prior to August 27, 2024[68] - Share transfer registration will be suspended from September 11, 2024, to September 16, 2024, to determine eligibility for the interim dividend[68] Management and Governance - Yang Lijuan resigned as Executive Director and CEO, and Gou Yiqun was appointed as Executive Director and CEO, effective July 1, 2024[67] - Zhang Junjie has been appointed as an independent non-executive director effective August 27, 2024, with an annual remuneration of CNY 1,200,000[70] - Zhang Junjie has over 13 years of experience in the catering industry and is the founder and CEO of Chagee Holdings Limited[70] - The company's board now includes Chairman and Executive Director Zhang Yong, Vice Chairman and Executive Director Zhou Zhaocheng, and other executive and independent non-executive directors[72] Strategic Plans - The company plans to continue refining the management of its restaurants, exploring diversified business strategies, and strategically seeking acquisitions of high-quality assets[37] Reporting and Compliance - The company will publish its interim results announcement and interim report on the HKEX website and its own website, with the report containing all information required under Appendix D2 of the Listing Rules[69]

Investment Rating - The report upgrades Haidilao International Holding to Neutral from Sell, with a new 12-month price target of HK$15.7, reflecting an 11.3% upside potential [2][22]. Core Insights - The share price correction of 23% since May 17 has accounted for less than expected margin expansion and slower store expansion, alongside increased competition in the restaurant sector [2][14]. - Haidilao has shown strong table turn growth year-to-date, outperforming other players in the restaurant industry, with over 20% growth each month [14][19]. - The company has committed to a high dividend payout ratio of 90% in 2023, which is expected to support the share price amid a more stable growth outlook [3][20]. Summary by Sections Financial Performance - Revenue estimates for 2024-2026 have been revised down by 2%-7% due to a slower expansion pace, with total revenue projected at RMB 41,453.3 million for 2023 and increasing to RMB 53,582.8 million by 2026 [5][11]. - The EBITDA for 2023 is estimated at RMB 7,915.8 million, with a growth trajectory leading to RMB 9,731.2 million by 2026 [5][11]. - The earnings per share (EPS) is projected to grow from RMB 0.83 in 2023 to RMB 1.09 by 2026 [5][11]. Market Position and Strategy - Haidilao's management has emphasized quality over quantity in store expansion, with only 8 new stores opened by the end of May 2024, compared to a target of 10% growth [2][14]. - The company has implemented effective turnaround initiatives, such as the "Hard Bone" and "Woodpecker" projects, which have improved operational efficiency and brand momentum [14][18]. Management Changes - A change in leadership was announced on June 21, with Mr. Gou Yiqun appointed as the new CEO, succeeding Ms. Yang Lijuan, who will lead the overseas operations [17][18]. - The new CEO's extensive experience in supply chain and digitalization is expected to support sustainable growth and operational precision in a competitive market [18].