Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a significant increase in dividend payout ratio, reaching nearly 90% [1] - The revenue for H2 2023 was HKD 35.31 billion, a 2.1% increase, with net profit at HKD 5.3 billion, up 1.9% [1] - The overall revenue for 2023 was HKD 61.48 billion, showing a marginal increase of 0.01%, while net profit rose by 11.2% to HKD 9.07 billion [1] - The company is expected to achieve total revenue of HKD 69 billion, HKD 76 billion, and HKD 84 billion for 2024-2026, representing year-on-year growth of 12%, 11%, and 10% respectively [1][3] Financial Performance Summary - The company’s gross profit margin and net profit margin improved by 1.4% and 1.5% year-on-year, respectively, due to a higher proportion of high-margin hot pot condiments and a decrease in costs [1] - The company’s earnings per share (EPS) for 2024E, 2025E, and 2026E are projected to be HKD 0.94, HKD 1.06, and HKD 1.17, respectively [3][4] - The return on equity (ROE) is expected to be 17.50% in 2024E, gradually decreasing to 16.76% by 2026E [3][4] Business Segment Performance - The recovery of the hot pot business has led to accelerated growth in related party transactions, with revenue from third-party and related party sources reaching HKD 41 billion and HKD 20 billion, respectively, in 2023 [1] - The convenience food segment showed a year-on-year decline of 16.3%, but the rate of decline has narrowed, indicating a shift towards cost-effective products that align with consumer trends [1] Future Outlook - The company is expanding its B-end and overseas markets, with new production capacities coming online in 2024, which is expected to enhance supply chain synergy [1] - The company is well-positioned for growth with a favorable outlook for the hot pot and convenience food segments, supported by the ongoing recovery in the restaurant industry [1]
颐海国际23年报点评：势能向上，分红率大幅提升