Investment Rating - The report initiates coverage on Tehai International (9658 HK) with a "Recommend" rating [6] Core Views - Tehai International, spun off from Haidilao's overseas operations, is a leading player in the international Chinese hotpot market with significant growth potential [3] - The company has demonstrated strong operational performance with revenue growth of 14 5% YoY in 24H1 and improving profitability metrics [4] - With 122 stores across 13 countries as of 2024H1, Tehai has established a solid foundation for international expansion, particularly in Southeast Asia and North America [3][4] - The global Chinese food market is projected to grow at a CAGR of 7 8% from 2022 to 2027, presenting significant opportunities for Tehai's expansion [4] Business Overview - Tehai International operates 122 stores globally as of 2024H1, with Southeast Asia accounting for 60 7% of total stores [3] - The company achieved revenue of $371 million in 24H1, with Southeast Asia contributing 54 9% of total revenue [4] - Key operational metrics show consistent improvement, with table turnover rate increasing from 3 3 times/day in 2022 to 3 8 times/day in 24H1 [4] - Store-level operating profit margin improved significantly from 4 1% in 2022 to 8 7% in 24H1 [4] Industry Analysis - The global Chinese food market reached $306 1 billion in 2022, with a projected CAGR of 7 8% through 2027 [4] - The international hotpot market was valued at $34 3 billion in 2022, accounting for 11 2% of the global Chinese food market [4] - The US represents the largest market for Chinese food internationally, accounting for 17 97% of the global market [46] - The hotpot market is expected to grow to $50 5 billion by 2027, with a CAGR of 8 0% [58] Competitive Advantages - Tehai benefits from Haidilao's strong brand recognition, ranking 14th in the 2024 Global Restaurant Brands Top 25 [5][61] - The company has established a robust management system with a three-tier structure and performance evaluation mechanisms [5] - Tehai maintains strong supply chain capabilities, leveraging Haidilao's existing infrastructure and partnerships [5] - Localization efforts have been successful, with non-Chinese customers accounting for approximately 50% of total customers in 2023 [5] Financial Projections - Revenue is projected to grow from $800 million in 2024 to $1 072 billion in 2026, representing a CAGR of 15 7% [6] - Net profit is expected to increase from $21 million in 2024 to $73 million in 2026 [6] - The company's PE ratio is forecasted to decline from 52x in 2024 to 15x in 2026 as profitability improves [6] Growth Drivers - Southeast Asia remains the core growth market, contributing 54 9% of revenue in 24H1 [4] - North America shows strong potential, with revenue contribution increasing to 20 7% in 24H1 [4] - The company's UE model shows consistent improvement, with daily revenue per store increasing from $15,400 in 2022 to $17,200 in 24H1 [4] - Same-store sales growth remains healthy at 8 2% in 24H1, with East Asia showing the strongest growth at 22 7% [41]
特海国际：海外中餐前景广，火锅龙头新征程