Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company reported a revenue of $198 million in Q1 2025, representing a year-over-year increase of 5.4%. Operating profit reached $8.2 million, up 44.6% year-over-year, with an operating margin of 4.1%, down 2.5 percentage points year-over-year. The improvement in profit was attributed to strategic adjustments aimed at enhancing customer experience and brand loyalty, despite rising labor costs [1][2] - The company continues to focus on enhancing customer experience, with same-store turnover showing stable growth. The opening of new stores is expected to accelerate year-over-year. Although operating margins may face short-term pressure, the strategic adjustments are expected to strengthen the brand and improve operational quality in the long term [1][4] Summary by Sections Financial Performance - In Q1 2025, the company generated revenue from restaurants, takeout, and other businesses amounting to $1.88 million, $0.04 million, and $0.054 million respectively, with year-over-year growth rates of 4.5%, 37.9%, and 22.7%. Same-store turnover was 4.0 times per day, an increase of 0.1 times year-over-year [2] - The average spending per customer was $24.2, a slight decrease of 0.3% year-over-year. The gross margin was 66.04%, down 0.47 percentage points year-over-year, primarily due to the introduction of more value-for-money menu items [2] Store Expansion and Strategy - As of Q1 2025, the company operated 123 direct stores across various regions, with a net addition of 1 store since the end of 2024. The company is committed to enhancing both the quality and quantity of its store openings, with plans to launch its first barbecue restaurant in Malaysia in June [3] - The company is actively pursuing the "Pomegranate Plan" to diversify customer experiences and explore new growth opportunities in different food categories [3] Valuation and Price Target - The target price for the company is set at HKD 19.69, down from the previous HKD 21.88, reflecting a valuation of 28 times the expected earnings per share (EPS) for 2026. The EPS estimates for 2025, 2026, and 2027 have been adjusted to $0.07, $0.09, and $0.11 respectively, reflecting a decrease of 17%, 10%, and 3% [4][8]
特海国际：翻台稳中有增，聚焦长期精细化建设-20250525