Super Hi International Holding （9658.HK）TTR Rose Notably Yoy in 1H24； Eyes on Store Expansion

Investment Rating - Investment Rating: BUY [2] - Target Price: HKD 14.06 [2] Core Insights - Super Hi International is expected to maintain a steady revenue growth trajectory, with projected revenues of USD 686.36 million in 2023, increasing to USD 1,075 million by 2026, reflecting a compound annual growth rate (CAGR) of approximately 14.71% [4][11] - The company is experiencing operational improvements, with a notable increase in table turnover rate (TTR) to 3.8x in 1H24, up from 3.3x in 1H23, indicating enhanced efficiency in restaurant operations [5][8] - Despite facing forex losses and increased expenses, the company is expected to achieve a low single-digit net profit margin (NPM) in 1H24, with an adjusted net profit estimated at USD 12 million [5][6] Financial Performance - Revenue for 2022 was USD 558.23 million, with a projected increase to USD 686.36 million in 2023, representing a year-over-year growth of 22.95% [4][11] - The net profit attributable to the parent company is expected to turn positive in 2023 at USD 25.65 million, following a loss of USD 41.25 million in 2022 [4][11] - The diluted earnings per share (EPS) is projected to improve from a loss of USD 0.07 in 2022 to a profit of USD 0.04 in 2023, with further growth anticipated in subsequent years [4][11] Store Expansion and Strategic Developments - As of 1Q24, Super Hi operated 119 stores, with plans for accelerated expansion, indicating a commitment to increasing market presence [6][7] - The appointment of a new CEO, previously from Haidilao International, signals a strategic focus on enhancing earnings growth and operational efficiency [6][7] - The company is diversifying its offerings with new restaurant formats, such as Muslim hotpot and noodle restaurants, which may contribute to a second growth curve [6][7]