HAIDILAO(HK:06862) EBSCN·2024-03-27 16:00Investment Rating - The report maintains a "Buy" rating for Haidilao [5][9]. Core Views - Haidilao's operating efficiency continues to improve, with a significant increase in the dividend payout ratio from 34% in 2022 to 90% in 2023, enhancing investment attractiveness [7]. - The company reported a revenue of 41.45 billion yuan in 2023, a year-on-year increase of 33.6%, and a net profit of 4.5 billion yuan, up 227.3% year-on-year [5][9]. - The introduction of a franchise model is expected to reduce financial pressure and operational risks, with plans to explore this model using existing stores initially [8]. Summary by Sections Financial Performance - In 2023, Haidilao achieved a revenue of 414.5 billion yuan, with a net profit of 45 billion yuan, reflecting a strong recovery in consumer dining frequency and effective marketing strategies [5][6]. - The overall table turnover rate improved to 3.8 times per day in 2023, up from 3.0 times in 2022, indicating enhanced customer engagement [6][7]. - The company plans to maintain its store count in 2024, with a focus on opening new stores under the franchise model [8]. Revenue Structure - Revenue from restaurant operations, takeout, and other sales segments were 392.67 billion, 10.41 billion, and 3.46 billion yuan respectively, with notable growth in the seasoning products segment [6]. - The average customer spending decreased to 99.1 yuan in 2023 from 104.9 yuan in 2022, but has stabilized in early 2024 [6]. Profitability and Cost Management - The net profit margin for 2023 was 10.9%, an increase of 6.4 percentage points year-on-year, despite a slight decline in the second half of the year due to rising employee costs [7][9]. - The company has managed to reduce the proportion of raw material costs to 40.9% and employee costs to 31.5% of total expenses in 2023 [7]. Future Outlook - The net profit forecasts for 2024 and 2025 have been raised to 5.26 billion and 5.79 billion yuan respectively, reflecting a positive outlook on operational efficiency and market recovery [9][10]. - The introduction of the franchise model is anticipated to contribute positively to the company's performance in the coming years [8].