HAIDILAO(HK:06862) Minsheng Securities·2024-03-27 16:00Investment Rating - The report maintains a "Buy" rating for Haidilao, with a target price of 16.86 HKD [3]. Core Insights - Haidilao's revenue for 2023 reached 41.453 billion CNY, a year-on-year increase of 33.55%, with a notable rise in restaurant operating income [2]. - The company reported a significant improvement in net profit, reaching 4.499 billion CNY, up 174.59% year-on-year, and a net profit margin of 10.85%, an increase of 5.57 percentage points [2]. - The introduction of a franchise model in March 2024 aims to explore new growth avenues while maintaining operational quality [2]. Summary by Sections Financial Performance - In 2023, Haidilao's total revenue was 41.453 billion CNY, with restaurant operating income at 39.613 billion CNY, reflecting a 36.19% increase [2]. - The company achieved a pre-tax profit of 5.833 billion CNY, a 175.45% increase, and a net profit of 4.499 billion CNY, marking a 174.59% growth [2]. - The average table turnover rate improved to 3.8 times per day, up from 3.0 times in the previous year, while the average customer spending decreased to 99.1 CNY from 104.9 CNY [2]. Business Segments - Restaurant operating income for 2023 was 39.267 billion CNY, up 35.67%, while takeaway revenue decreased by 18.64% to 1.041 billion CNY [2]. - The company also saw a significant increase in other restaurant operating income, which rose by 139.79% to 346 million CNY [2]. Future Outlook - The report highlights the potential for growth through the franchise model, which will be managed by Haidilao to ensure quality control [2]. - The company is expected to achieve net profits of 5.141 billion CNY, 5.841 billion CNY, and 6.461 billion CNY for 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 17X, 15X, and 13X [3].