Investment Rating - The report maintains a rating of "Buy" for the company [1][6] Core Insights - The company has shown an increase in operational efficiency and is actively exploring diversified business models to create a second growth engine [4][5] - The company reported a revenue of $20.9 million in Q4 2024, representing a year-on-year increase of 10.4%, with an operating profit margin of 8.4% [2] - For the full year 2024, the company achieved a revenue of $77.8 million, a 13.4% increase, but reported a net loss attributable to shareholders of $1.1 million, primarily due to foreign exchange losses [2] Summary by Sections Q4 Performance - In Q4 2024, the company's restaurant segment generated $20 million in revenue, a 10% increase, with same-store sales up by 4.2% and a net addition of 1 store [3] - The average table turnover rate remained stable at 3.9 times, while the average customer spend was $25.0, up by $0.3 [3] Strategic Diversification - The company is strategically exploring various business models, with a 12.9% increase in revenue from its delivery business and a 22.7% increase from other business segments [4] - The company is expanding its offerings beyond traditional dining, including HAO Noodle and other fast-casual concepts [4] Operational Efficiency - The operating profit margin for Q4 2024 was 8.4%, an increase of 2.0 percentage points, with a gross margin of 67.6% [5] - Employee costs as a percentage of revenue decreased to 32.2%, while rent and related expenses also saw a slight decline [5] Financial Projections - The company has adjusted its revenue forecasts for 2025-2027, expecting revenues of $88.8 million, $100.6 million, and $111.4 million respectively, with net profits projected at $5.5 million, $6.4 million, and $7.2 million [6][10] - The latest stock price corresponds to a price-to-earnings ratio of 27, 23, and 21 for the years 2025, 2026, and 2027 respectively [6]

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 21.88 HKD [5][6]. Core Views - The company has shown continuous improvement in operational quality, with a significant focus on enhancing customer experience and maintaining positive same-store sales growth across various regions. The expansion strategy balances both quality and quantity, with an expected acceleration in store openings in 2025 [1][4]. - The company is actively implementing a multi-brand strategy, indicating considerable medium to long-term growth potential [1]. - The financial outlook remains positive, with revenue and profit projections showing growth, supported by supply chain optimization and operational efficiency improvements [4][19]. Summary by Sections Financial Performance - In Q4 2024, the company reported revenue of 2.09 billion USD, a year-on-year increase of 10.4%, and an operating profit of 17.5 million USD, up 44.6% year-on-year, with an operating profit margin of 8.4% [1]. - For the full year 2024, revenue reached 7.78 billion USD, reflecting a 13.4% increase, while operating profit was 53.3 million USD, a 23.7% increase year-on-year [1][2]. - The net profit attributable to the parent company for 2024 was 0.22 million USD, down 15% year-on-year, but excluding foreign exchange losses, the net profit was 0.42 million USD, up 35.5% [1]. Store Expansion and Operations - As of the end of 2024, the company operated 122 stores across various regions, with a net addition of 7 stores during the year. The company plans to accelerate store openings in 2025, with 10 new hot pot restaurants and 2 barbecue projects in the pipeline [3][4]. - The same-store turnover rate improved across all regions, with East Asia achieving a turnover of 4.3 times per day, an increase of 0.7 times year-on-year [2][3]. Valuation and Future Projections - The target price of 21.88 HKD is based on a projected 28 times the 2026 PE ratio, reflecting the company's unique position as a leading Chinese restaurant brand expanding internationally [4][5]. - Revenue forecasts for 2025 are set at 898.21 million USD, with a projected growth rate of 15.41% [19]. The net profit for 2025 is expected to reach 51.61 million USD, a significant increase of 136.71% year-on-year [19].

Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2]. Core Views - The report highlights that the company's restaurant profit margin has improved, with a focus on the performance in the second half of the year [5]. - The company achieved a revenue of $777.8 million in 2024, representing a year-on-year growth of 13.4%, while the net profit attributable to the parent company was $2.2 million, a decrease of 15.0% due to foreign exchange losses [5][8]. - The report anticipates continued operational efficiency improvements and a potential acceleration in store expansion [6][8]. Summary by Sections Financial Performance - In 2024, the company generated revenue of $777.8 million, a 13.4% increase year-on-year, while the net profit was $2.2 million, down 15.0% primarily due to foreign exchange losses [5]. - The revenue structure includes restaurant operating income of $747 million, up 13.0%, driven by increased table turnover and customer traffic [5]. - The company expects revenues for 2025-2027 to be $889 million, $997 million, and $1.11 billion, with respective year-on-year growth rates of 14.3%, 12.1%, and 11.4% [8]. Operational Efficiency - The total number of restaurants reached 122 by the end of 2024, with a net increase of 7 restaurants compared to the previous year [6]. - The average customer unit price was $25.0, reflecting a 0.8% increase year-on-year, while the overall average table turnover rate was 3.8 times per day, an increase of approximately 0.3 times [6]. Profitability Metrics - The restaurant operating profit margin improved to 10.1%, an increase of 1.1 percentage points year-on-year [7]. - The cost of raw materials and consumables rose by 9.8% to $258 million, accounting for 33.1% of revenue, a decrease of 1.1 percentage points year-on-year [7]. - Employee costs increased by 14.7% to $259 million, representing 33.3% of revenue, due to network expansion and rising minimum wages in certain countries [7]. Valuation and Forecast - The report maintains a positive outlook on the company's brand strength and management capabilities, projecting a reasonable value range of HKD 19.1 to 21.3 per share based on a price-to-sales ratio of 1.8-2.0 for 2025 [8]. - The expected net profit for 2025 is projected to be $5.5 million, reflecting a significant year-on-year growth of 156.5% [9].

Core Points - The company reported a decrease in profit attributable to shareholders of approximately 15% to $21.8 million for the year 2024, primarily due to increased foreign exchange losses of $14.7 million driven by currency fluctuations [1] - Revenue for the fourth quarter was approximately $20.88 million, reflecting a year-on-year increase of 10.4%, while operating profit rose by 44.6% to $1.75 million [1] - For the full year 2024, total revenue reached approximately $778 million, a year-on-year growth of 13.4%, with operating profit increasing by 23.7% to $53.3 million [1] Financial Performance - The company experienced a net loss of $11.6 million for the fourth quarter, contrasting with a profit in the same period last year [1] - The overall operating profit margin improved by 0.5 percentage points compared to the previous year, driven by operational efficiency enhancements [2] - The restaurant's overall table turnover rate for 2024 was 3.8 times per day, an increase of 0.3 times per day from the previous year [2] Strategic Initiatives - The CEO emphasized a dual focus on employee engagement and customer experience, which contributed to the revenue growth and improved operating profit margin [2] - The company launched the "Pomegranate Plan," aimed at diversifying its business and expanding its customer base, with each seed representing a unique business model [2] - Future strategies include expanding the restaurant network and optimizing store layouts while supporting the "Pomegranate Plan" for business diversification [2]

Financial Performance - Total revenue for the year ended December 31, 2024, was $778.3 million, an increase of 13.4% compared to $686.4 million in 2023[5] - Net profit for the period was $21.4 million, down from $25.3 million in the previous year, impacted by a foreign exchange loss of $14.7 million[15] - The company's net profit for 2024 was $21.4 million, a decrease of 15.4% from $25.3 million in 2023, mainly driven by increased foreign exchange losses and partially offset by revenue growth from business expansion and improved operational efficiency[39] - Total comprehensive income for the year reached $33.427 million, compared to $29.884 million in 2023, marking an increase of approximately 11.5%[64] - Basic and diluted earnings per share decreased to $0.04 from $0.05 in the previous year, a decline of 20%[64] Revenue Growth - The overall revenue from Haidilao restaurants increased by 13.0% to $747.3 million, driven by improved table turnover rates and strategic network expansion[18] - Same-store sales for 2024 reached $653.99 million, an increase of 7.1% from $610.69 million in 2023[22] - Restaurant-level revenue reached $758.6 million, up 13.0% from $671.0 million in the previous year[60] - Revenue from takeaway services in 2024 was $11.3 million, up 15.3% from $9.8 million in 2023[24] - Revenue from other sources, including hot pot condiments and branded food, increased by 27.9% to $19.7 million in 2024 from $15.4 million in 2023[25] Operational Efficiency - The operating profit margin for the company improved to 6.8% in 2024 from 6.3% in 2023[3] - The restaurant-level operating profit margin improved to 10.1% in 2024 from 9.0% in 2023[6] - The average daily revenue per restaurant rose to $17.7 thousand in 2024, compared to $16.3 thousand in 2023[4] - The average table turnover rate increased to 3.8 times per day in 2024, up from 3.5 times in 2023[4] - The average daily sales per store increased to $18.3 thousand in 2024 from $17.1 thousand in 2023, reflecting a growth of 7.0%[22] Expansion Strategy - The number of restaurants increased to 122 in 2024 from 115 in 2023, with a total customer traffic of 29.9 million, up from 26.7 million[4] - The company opened 10 new restaurants in 2024 while closing 3 in Southeast Asia, maintaining a cautious expansion strategy[5] - The company aims to enhance brand recognition globally and plans to continue expanding its restaurant network in existing and new markets[16] - The company is focused on expanding its restaurant operations and delivery services in overseas markets, particularly outside of mainland China, Hong Kong, Macau, and Taiwan[67] Cost Management - Material and consumable costs rose to $257.7 million in 2024, a 9.8% increase from $234.7 million in 2023, but the percentage of revenue decreased from 34.2% to 33.1%[28] - Employee costs increased by 14.7% to $259.3 million in 2024 from $226.0 million in 2023, with the percentage of revenue rising slightly from 32.9% to 33.3%[29] - Rent and related expenses increased by 16.9% to $20.1 million in 2024 from $17.2 million in 2023[30] - Other expenses increased by 12.8% to $70.7 million in 2024 from $62.7 million in 2023, primarily due to restaurant network expansion[34] Financial Position - As of December 31, 2024, the company's cash and cash equivalents increased to $254.7 million, up 66.6% from $152.9 million in 2023, attributed to business growth and unutilized proceeds from the NASDAQ IPO[46] - The current ratio improved to 2.5 in 2024 from 1.7 in 2023, indicating better short-term financial health[50] - Trade payables decreased to $30.7 million as of December 31, 2024, down 10.8% from $34.4 million in 2023, due to strategic optimization of supply chain management[42] - Total liabilities remained stable at $128.568 million, compared to $128.571 million in 2023[66] Strategic Initiatives - The "Pomegranate Plan" is being implemented to foster innovation and explore new business formats, including strategic acquisitions[16] - The company plans to continue seeking strategic investment opportunities that can bring synergistic effects, although no specific commitments for significant investments have been disclosed[49] - The company has not purchased, sold, or redeemed any of its listed securities during the reporting period[122] Compliance and Governance - The audit committee reviewed the annual performance for the year ending December 31, 2024, and confirmed compliance with relevant accounting standards[125] - The company has complied with the Corporate Governance Code and the Standard Code for securities trading by directors throughout the reporting period[121] - There were no significant events to disclose after December 31, 2024, up to the date of this announcement[127]

Revenue Performance - Revenue for Q4 2024 was $208.8 million, an increase of 10.4% compared to $189.2 million in Q4 2023[9] - Total revenue for the fiscal year 2024 was $778.3 million, a 13.4% increase from $686.4 million in 2023[9] - Revenue from Haidilao restaurants reached $747.3 million, up 13.0% from $661.2 million in 2023, driven by improved table turnover and strategic network expansion[18] - Takeout business revenue was $11.3 million, a 15.3% increase from $9.8 million in 2023, attributed to brand influence and partnerships with local delivery platforms[18] - Other business revenue grew by 27.9% to $19.7 million from $15.4 million in 2023, due to the popularity of hot pot condiments and strategic exploration of secondary brand restaurants[18] - Total restaurant-level revenue was $758.6 million in 2024, compared to $670.9 million in 2023, after accounting for other income[23] - Annual revenue for 2024 was $778.31 million, up 13.4% from $686.36 million in 2023[32] Customer Traffic and Sales - Total customer traffic exceeded 8.0 million, a 9.6% increase from 7.3 million in the same period last year[9] - Same-store sales growth rate was 4.2% for Q4 2024[9] - Total customer traffic reached 29.9 million in 2024, up from 26.7 million in 2023, representing an increase of 12.0%[26] - Same-store sales for the year totaled $653,991,000, a 7.1% increase from $610,692,000 in 2023[28] - Average daily revenue per restaurant was $18,700 in 2024, compared to $17,700 in 2023, reflecting a growth of 5.6%[27] - Customer average spending was $25.00 in 2024, slightly up from $24.80 in 2023[26] Profitability and Margins - Operating profit margin improved to 8.4%, up from 6.4% in Q4 2023[9] - Operating profit for Q4 2024 was $17.5 million, a 44.6% increase from $12.1 million in Q4 2023[14] - Operating profit for 2024 was $53.3 million, a 23.7% increase from $43.1 million in 2023, with an operating profit margin of 6.8% compared to 6.3% in the previous year[20] - Restaurant-level operating profit margin improved to 10.1% in 2024 from 9.0% in 2023, reflecting operational efficiency and revenue growth[23] - The company reported a net loss of $11.61 million for Q4 2024, compared to a profit of $23.27 million in Q4 2023[32] - Net profit for the year was $21.4 million, a decrease of 15.4% from $25.3 million in 2023, primarily due to increased foreign exchange losses[20] Costs and Expenses - Employee costs rose to $67.2 million, a 9.6% increase from $61.3 million in the same period last year[14] - Cost of raw materials and consumables increased to $257.7 million, up 9.8% from $234.7 million in 2023, but the percentage of revenue decreased from 34.2% to 33.1%[19] - Employee costs rose to $259.3 million, a 14.7% increase from $226.0 million in 2023, with the percentage of revenue increasing from 32.9% to 33.3%[19] Business Expansion and Initiatives - The company opened 2 new restaurants in Q4 2024, bringing the total to 122, a net increase of 7 from the end of 2023[9] - The company initiated the "Pomegranate Plan" in 2024 to diversify its business and expand its customer base[10] - Total restaurant count increased to 122 in 2024 from 115 in 2023, with notable growth in Southeast Asia (73 restaurants) and North America (20 restaurants)[26] - The company plans to focus on expanding its market presence and enhancing product development in the upcoming year[32] Financial Position - Total assets increased to $361.20 million in 2024 from $357.92 million in 2023[33] - Cash and cash equivalents at year-end were $254.72 million, up from $152.91 million in 2023, marking a 66.5% increase[35] - Non-current liabilities rose to $194.20 million in 2024, compared to $176.19 million in 2023[34] - The company’s equity attributable to owners increased to $360.03 million in 2024 from $270.09 million in 2023[34] Recognition and Market Position - The company has been recognized as the "World's Strongest Restaurant Brand" in 2024 by Brand Finance, highlighting its market position[29] - The company operates in 14 countries across four continents, making it the largest Chinese dining brand in international markets[29] Foreign Exchange Impact - The company experienced a foreign exchange gain of $12.36 million in Q4 2024, compared to a loss of $9.96 million in Q4 2023[32] - The net loss for the period was $11.6 million, compared to a profit of $23.3 million in the same period last year, primarily due to increased foreign exchange losses[14]

Investment Rating - The report maintains a "Buy" rating for the company [9]. Core Insights - In Q3 2024, the company achieved revenue of $199 million, a year-on-year increase of 14.64%, and net profit of $37.66 million, marking a return to profitability [2][6]. - The company is positioned as a leader in the international Chinese dining market, benefiting from its unique service model, strong brand power, and rapid localization capabilities [6][8]. - The company is expected to generate revenues of $830 million, $976 million, and $1.129 billion from 2024 to 2026, with net profits projected at $24.62 million, $51.23 million, and $67.65 million respectively [8]. Revenue Breakdown - The primary revenue source remains restaurant operations, with Haidilao restaurant revenue at $191 million, accounting for 96.12% of total revenue, and a year-on-year growth of 14.5% [6][7]. - The takeaway segment saw an 8.3% year-on-year increase, driven by strengthened partnerships with local delivery platforms [6]. - Other business revenues grew by 21.4%, attributed to the recognition of Haidilao's condiments and brand products in local markets [6]. Operational Performance - Total customer traffic reached 7.4 million in Q3 2024, a 4.23% increase year-on-year, with a table turnover rate of 3.8 times per day [7]. - Average daily revenue per restaurant was $17,700, reflecting a 9.94% year-on-year increase, while same-store sales grew by 5.6% [7]. - The overall average spending per customer was $25.80, an increase of 8.86% year-on-year [7]. Cost Management - The company reported a gross profit margin of 7.5% in Q3 2024, an increase of 1.8 percentage points year-on-year, due to cost optimization across various expense categories [7]. - Key cost components included raw materials (32.96%), employee costs (33.15%), rent (2.70%), and utilities (3.77%), with some costs showing slight year-on-year changes [7]. Store Expansion Strategy - The company continues to implement a bottom-up store opening strategy, with a net increase of 7 restaurants year-on-year, totaling 121 locations as of September 30, 2024 [8]. - The majority of new openings are concentrated in Southeast Asia, which remains a key market for the company [8].

Investment Rating - The report maintains a "Recommend" rating for Tehai International (9658 HK) [4] Core Views - Tehai International achieved strong Q3 2024 results with revenue of $199 million, up 14 6% YoY, and operating profit of $15 million, up 52 0% YoY [3] - The company's profitability improved significantly, with operating margin reaching 7 5%, up 1 8 percentage points YoY, and net profit attributable to shareholders turning positive at $37 72 million [3] - Tehai International's localization strategy and Red Pomegranate Plan are driving market penetration and synergies with its parent brand Haidilao [3] Business Performance - Restaurant revenue grew 14 5% YoY to $191 million, driven by both higher traffic and average spending per customer [3] - Overall table turnover rate increased to 3 8 times per day, with the highest rate in East Asia at 4 3 times per day [3] - Average customer spending rose 8 9% YoY to $25 8, with the highest in North America at $43 5 [3] - Total customer traffic reached 7 4 million, up 4 2% YoY, supporting growth in delivery and other businesses [3] Store Network and Operations - The company had 121 restaurants as of Q3 2024, with no new openings in the quarter but a net increase of 6 stores year-to-date [3] - Same-store sales grew 5 6%, with East Asia showing the strongest growth at 20 5% [3] - Same-store table turnover rate remained stable at 3 7 times per day [3] Cost Management and Profitability - Gross margin improved to 67%, up 1 4 percentage points YoY, driven by supply chain optimization and process improvements [3] - Employee cost ratio was 33 1%, up 0 2 percentage points, while rental and related expenses decreased to 2 7%, down 0 4 percentage points [3] - Other expenses ratio decreased to 9 4%, down 1 2 percentage points [3] Financial Forecasts - Revenue is expected to grow from $794 million in 2024 to $1 008 billion in 2026, with a CAGR of 12 6% [3][28] - Net profit attributable to shareholders is projected to increase from $38 million in 2024 to $68 million in 2026 [3][28] - The company's P/E ratio is forecasted to decline from 28x in 2024 to 16x in 2026, reflecting expected earnings growth [3][28] Valuation and Metrics - The stock is trading at 12 72 HKD as of November 26, 2024 [4] - Key valuation metrics include a P/B ratio of 2 9x for 2024 and 2 2x for 2026, and an EV/EBITDA of 6 56x for 2024 and 5 03x for 2026 [28]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 18.68 [4][7]. Core Insights - The company reported a revenue of USD 19.9 million in Q3 2024, representing a year-over-year increase of 14.6%. Operating profit reached USD 14.9 million, up 52.0% year-over-year, with an operating margin of 7.5%, an increase of 1.8 percentage points [1]. - The company has successfully balanced store opening speed with single-store quality, leading to improved same-store sales and turnover rates. The Southeast Asia region showed stable growth, while management adjustments in East Asia yielded significant results [1][2]. - The new CEO has focused on enhancing global store management and supply chain efficiency, which is expected to continue driving high turnover rates into the peak season [1][3]. Revenue and Profitability - Q3 2024 restaurant and takeaway revenue reached USD 19.1 million and USD 0.03 million, respectively, with year-over-year increases of 14.5% and 8.3%. The average daily sales per store were USD 17,700, up 9.9% year-over-year [2]. - The gross margin improved to 67.0%, an increase of 1.5 percentage points year-over-year, driven by higher average spending per customer and global supply chain optimization [2]. Store Expansion and Management - As of Q3 2024, the company operated 121 stores across various regions, with a net addition of 6 stores in the first nine months of 2024. The company is actively implementing the "Pomegranate Plan" to explore new store models, including halal hot pot and noodle shops [3]. - The management has introduced a dual-manager policy to enhance store performance and employee motivation, which has shown positive results in Q3 [3]. Financial Projections - The report revises the earnings per share (EPS) estimates for 2024, 2025, and 2026 to USD 0.06, USD 0.08, and USD 0.09, respectively, reflecting the company's growth potential and improved profitability [4][6]. - The target price of HKD 18.68 corresponds to a 30x price-to-earnings (PE) ratio based on the 2025 earnings estimates, indicating a premium valuation due to the company's leading position in the Chinese restaurant market [4][12].

Financial Performance - Revenue for Q3 2024 was $198.6 million, an increase of 14.6% compared to $173.3 million in Q3 2023[6] - Operating profit for the quarter was $14.9 million, a 52.0% increase from $9.8 million in Q3 2023[13] - The company reported a net profit of $37.7 million for the quarter, compared to a loss of $1.4 million in Q3 2023[13] - The net profit for the three months ended September 30, 2024, was $37.656 million, a significant recovery from a net loss of $1.402 million in the same period of 2023[33] - The company reported a total comprehensive income of $24.070 million for the three months ended September 30, 2024, compared to $1.617 million in the prior year[33] Customer Traffic and Sales - Total customer traffic exceeded 7.4 million, a 4.2% increase from 7.1 million in the same period last year[8] - Same-store sales growth rate was 5.6%[9] - Same-store sales for Southeast Asia reached $96.839 million, up from $93.131 million in the previous year, reflecting a growth of 7.3%[24] - The average daily sales per store in North America increased to $21.8 thousand from $20.9 thousand, indicating a growth of 4.3%[24] - The total number of same-store locations as of September 30, 2024, was 106, with 65 in Southeast Asia, 13 in East Asia, and 18 in North America[24] Operational Metrics - Operating profit margin was 7.5%, up from 5.7% in Q3 2023, reflecting a 1.8 percentage point improvement[10] - The number of restaurants increased to 121, net adding 6 restaurants since the end of 2023[6] - Average table turnover rate was 3.8 times per day, compared to 3.7 times per day in the same period last year[7] - The average table turnover rate remained stable at 3.7 times per day across all regions[24] Cash Flow and Assets - Cash and cash equivalents increased to $215.162 million as of September 30, 2024, up from $152.908 million at the end of 2023[34] - The company’s non-current assets totaled $355.875 million as of September 30, 2024, slightly down from $357.921 million at the end of 2023[34] - Net cash provided by operating activities for the three months ended September 30, 2024, was $40,699 thousand, compared to $41,311 thousand for the same period in 2023[39] - Net cash used in investing activities for the three months ended September 30, 2024, was $(52,921) thousand, a significant increase from $(19,911) thousand in the prior year[39] - Net cash used in financing activities for the three months ended September 30, 2024, was $(11,440) thousand, compared to $(10,022) thousand in the same period last year[39] - The net increase in cash and cash equivalents for the three months ended September 30, 2024, was $70,570 thousand, a turnaround from a decrease of $(43,032) thousand in the prior year[39] - Cash and cash equivalents at the beginning of the period were $140,659 thousand, up from $118,936 thousand a year earlier[39] - Cash and cash equivalents at the end of the period totaled $215,162 thousand, significantly higher than $75,271 thousand at the end of the same period in 2023[39] Future Plans - The company plans to reopen a temporarily closed restaurant in Southeast Asia as a second brand restaurant in the near future[6]