Investment Rating - The report maintains an "Outperform" rating for Super Hi International Holding [1][16]. Core Views - The company's profit-sharing strategy has led to short-term pressure on operating profit, but diversified brands are expected to drive new growth [1][16]. - The company achieved a revenue of USD 400 million in 1H25, a 7.0% year-on-year increase, and a net profit of USD 28.352 million, marking a turnaround from a loss in the previous year [5][15]. - The report highlights the strong growth in the takeaway business and the introduction of new business opportunities through strategic marketing collaborations [6][16]. Financial Performance Summary - Revenue projections for 2025-2027 have been slightly adjusted downwards by 2.3%/2.0%/1.9% to USD 860 million, USD 960 million, and USD 1.06 billion, respectively, with year-on-year growth rates of 10.2%, 11.5%, and 10.7% [10][16]. - The net profit attributable to shareholders is projected to be USD 40 million, USD 60 million, and USD 70 million for 2025-2027, reflecting year-on-year growth of 104.7%, 28.4%, and 21.9% [10][16]. - The operating profit margin for 1H25 was reported at 6.4%, down 2.3 percentage points year-on-year, consistent with the company's profit-sharing policy [5][15]. Revenue Breakdown - Restaurant operating revenue reached USD 380 million in 1H25, a 5.9% increase year-on-year, with significant contributions from Southeast Asia, East Asia, and North America [6][10]. - The takeaway business generated USD 7.738 million, showing a remarkable growth of 49.0% year-on-year, attributed to product optimization and strategic marketing [6][10]. - Other income amounted to USD 11.527 million, a 24.6% increase year-on-year, driven by the popularity of hot pot seasonings and the launch of a second brand under the "Red Pomegranate Plan" [6][10]. Cost Structure and Efficiency - In 1H25, the cost of raw materials and consumables increased by 8.1% to USD 130 million, accounting for 34.0% of revenue [8][10]. - Employee costs rose by 11.0% to USD 140 million, with an employee cost ratio of 35.3%, reflecting the expansion of the restaurant network and increased investment in employee welfare [8][10]. - The company is implementing measures to reduce costs and improve efficiency, which are expected to enhance profitability in the second half of 2025 [8][10].