Investment Rating - The report maintains a "Buy" rating for Haidilao [7] Core Insights - Haidilao is undergoing a strategic transformation, marking a "second entrepreneurship" phase with a focus on core business stability and breakthrough strategies, led by founder Zhang Yong returning as CEO [2][18] - The "Pomegranate Plan" aims to diversify from a single hotpot model to a multi-brand strategy, with significant growth in subsidiary brand revenues [3][45] - The main brand is showing signs of recovery, with improved customer spending and operational metrics validating demand resilience [4][66] - A high dividend policy is in place, providing a safety net for investors, with a dividend payout ratio increasing from 40% in 2022 to 90% in 2023 [4][67] Summary by Sections 1. Strategic Transformation - In early 2026, Haidilao is at a strategic turning point with a focus on upgrading management and operations, shifting from cost-cutting to maintaining core business and focusing on breakthroughs [2][18] - The management structure has been revamped, with experienced female executives joining the board to enhance operational efficiency [19][31] 2. Pomegranate Plan - The "Pomegranate Plan" is designed to break through the ceiling of the hotpot category and incentivize talent, with 14 brands and 126 stores launched by mid-2025, achieving a revenue growth of 227% year-on-year for subsidiary brands [3][45] - Key focus areas include seafood restaurants, sushi, and takeout services, with a strong emphasis on fresh ingredients and customer experience [3][49][52] 3. Main Brand Performance - The main brand has stabilized, with an average customer spending of 97.9 yuan in the first half of 2025, showing a recovery trend [4][59] - The restaurant's turnover rate has improved since July 2025, with significant customer traffic during holiday periods, confirming the brand's market strength [4][66] 4. Dividend Policy - Haidilao has significantly increased its dividend payout ratio, with plans for a 95% payout in 2024 and maintaining this level in the first half of 2025, resulting in a dividend yield of 5.4% [4][67]