Core Insights - The company reported a revenue of $397 million in the first half of 2025, marking a year-on-year increase of 6.79%, and a net profit of $28 million, indicating a return to profitability due to favorable exchange rate fluctuations [1] - In Q2 2025, the company achieved a revenue of $201 million, reflecting a year-on-year growth of 8.26%, with a net profit of $16 million, also showing a return to profitability [1] Business Performance - Revenue growth across all business lines: restaurant operations, takeout, and other businesses increased by 5.9%, 48.1%, and 25% respectively in H1 2025 [1] - Restaurant revenue growth was driven by store expansion and enhanced brand influence, alongside improved customer traffic and table turnover rates [1] - The takeout business saw significant growth due to product and service optimization based on market demand and strategic marketing collaborations with local delivery platforms [1] - Other income, primarily from hot pot condiments and sub-brands, benefited from rising local customer preferences and the ongoing "Pomegranate Plan" for second brand restaurant incubation [1] Operational Metrics - Average table turnover rate increased by 0.1 percentage points to 3.9 times per day in H1 2025, with East Asia showing a notable improvement of 0.8 percentage points to 4.9 times per day [1] - Overall average revenue per restaurant per day grew by 2.9% year-on-year, despite a 1.6% decline in average customer spending due to pricing adjustments [1] - Same-store sales increased by 3% year-on-year, with the exception of Southeast Asia, which saw a decline of 1.2% [1] Profitability Analysis - Operating profit margins faced pressure due to strategic decisions, with raw material and consumables costs rising by 0.4 percentage points to 34%, and employee costs increasing by 1.2 percentage points to 35.3% [1] - The overall operating profit margin decreased by 2.6 percentage points to 3%, attributed to customer discounts from quality-price ratio strategies and the need for improved management practices [1] Expansion and Brand Development - The company opened 8 new Haidilao restaurants in H1 2025 while closing 4 underperforming locations, resulting in a total of 126 restaurants by the end of Q2 2025, an increase of 4 from the previous year [2] - The company is actively developing second brands across various categories, including hot pot, barbecue, and fast food [2] Future Outlook - The company is well-positioned in the international dining market, benefiting from its unique service model, strong brand presence, and rapid localization capabilities [2] - Forecasts for net profit from 2025 to 2027 are projected at $46.81 million, $59.08 million, and $70.67 million respectively, maintaining a "buy" rating [2]

Investment Rating - The report maintains a "Buy" rating for the company [9]. Core Insights - In Q1 2025, the company achieved revenue of $198 million, a year-on-year increase of 5.4%, and a net profit of $12 million, benefiting from a decrease in foreign exchange losses, thus turning from a loss to a profit [2][6]. - The company is positioned as a leader in the international Chinese dining market, leveraging its unique service model, strong brand power, and rapid localization capabilities [2][6]. - The company is expected to achieve net profits of $44.06 million, $55.15 million, and $63.41 million from 2025 to 2027, indicating strong growth potential in the hot pot industry internationally [2][6]. Revenue and Profitability - The company's revenue from its main business segments in Q1 2025 showed steady growth: Haidilao restaurant operations increased by 4.5%, takeaway business by 37.9%, and other businesses by 22.7% [6]. - The average daily sales per restaurant reached $17,800, a year-on-year increase of 1.71%, while same-store sales grew by 0.34% [6]. - The overall customer spending per visit decreased by 2.8% to $24.20, attributed to the company's pricing adjustments and menu changes [6]. Store Expansion and Network - The company opened 4 new Haidilao restaurants in Q1 2025, while closing 3 underperforming locations, bringing the total number of stores to 123 [6]. - The company continues to expand its presence in Southeast Asia, East Asia, North America, and other regions, with a net increase of 1 store in each of these areas compared to the same period in 2024 [6].