Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported a revenue of 3.064 billion HKD for the first half of 2024, representing a year-on-year increase of 6.42%. However, the operating profit at the store level decreased by 31.7% to 393 million HKD, and the adjusted net profit fell by 68.88% to 77.154 million HKD [5]. - The company is facing pressure on customer traffic and average spending, with same-store sales declining across its brands. The company is adjusting its brand structure and exploring potential opportunities for expansion [5][6]. - The company is focusing on building a central kitchen to enhance supply chain capabilities and reduce costs, which is expected to improve profitability in the future [6]. Summary by Sections Revenue and Profitability - In the first half of 2024, the company achieved a revenue of 3.064 billion HKD, up 6.42% year-on-year. However, the operating profit decreased by 31.7% to 393 million HKD, and the adjusted net profit dropped by 68.88% to 77.154 million HKD [5]. Operational Performance - The company’s brands, including Tai Er, Song Hot Pot, and Jiu Mao Jiu, experienced a decline in table turnover rates and average spending. The table turnover rates were 3.8, 2.9, and 2.8 times per day, showing a year-on-year decrease of 0.5, 1, and flat respectively. Average spending per customer decreased by 5.3%, 9.1%, and 5.1% for the respective brands [5]. Store Expansion and Brand Structure - The company opened 59 new restaurants in the first half of 2024, including 38 Tai Er restaurants and 13 Song Hot Pot restaurants. The company plans to sell three restaurants and has adjusted its annual opening expectations [5]. Profit Margin and Cost Structure - The cost of raw materials and consumables accounted for 35.8% of total revenue, while employee costs rose to 29.2%. The restaurant-level profit margin and adjusted net profit margin were 13% and 2.5%, respectively, both showing a decline compared to the previous year [6]. Future Outlook - Revenue forecasts for 2024-2026 are projected at 6.277 billion, 7.225 billion, and 8.336 billion HKD, with net profits of 179 million, 239 million, and 305 million HKD respectively [6].
九毛九：2024年中期业绩点评：业绩承压，关注品牌结构调整