Core Viewpoint - Goldman Sachs anticipates that Haidilao's revenue growth will return to normal in the second half of the year due to a low base and effective operational optimization measures, although the consumer environment remains a challenge for table turnover recovery [1] Revenue and Profitability - The company is expected to face pressure on profit margins in the second half of the year due to last year's high base and ongoing investments in customer experience and employee benefits [1] Shareholder Returns and Stock Performance - Shareholder returns are expected to support the stock price despite a slowdown in store count and sales growth, along with short-term profit margin headwinds [1] Earnings Forecast Adjustment - Goldman Sachs has lowered its earnings forecasts for 2025 to 2027 by 7% to 14% and maintains a "Neutral" rating, with the target price adjusted from HKD 15.3 to HKD 14.7 [1]

Core Viewpoint - Haidilao International Holding Ltd reported a decline in revenue and profitability for the first half of 2025 compared to the same period in 2024 [1] Financial Performance - Revenue for the first half of 2025 was 20.703 billion yuan, down from 21.491 billion yuan in 2024 [1] - Restaurant operating income decreased from 20.596 billion yuan in 2024 to 19.177 billion yuan in 2025 [1] - Profit before tax for the first half of 2025 was 2.627 billion yuan, a decrease from 2.888 billion yuan in 2024 [1] - Net profit fell from 2.033 billion yuan in 2024 to 1.755 billion yuan in 2025 [1] - Profit attributable to shareholders decreased from 2.038 billion yuan in 2024 to 1.759 billion yuan in 2025 [1] - Core operating profit (non-IFRS measure) declined from 2.799 billion yuan in 2024 to 2.408 billion yuan in 2025 [1] Restaurant Operations - The number of self-operated restaurants decreased from 1,343 in 2024 to 1,322 in 2025 [1] - The number of franchised restaurants increased significantly from 1 in 2024 to 41 in 2025 [1] Dividends - The company announced an interim dividend of 0.338 HKD per share [1]

Group 1 - The core idea of the articles highlights the employee welfare initiatives of Haidilao, particularly focusing on educational subsidies and support for employees' children [1][3][5] - In September 2024, Haidilao will distribute scholarships totaling 4.47 million yuan to 508 children of employees entering university [1] - The company has been providing educational subsidies since 2005, covering various stages from preschool to university, with a specific program offering 8,800 yuan for university students [3] Group 2 - Haidilao has implemented a "parent-child companionship" program since 2019, which includes housing, education, and childcare subsidies to help employees bring their children to their work locations [5] - For employees unable to relocate their children, Haidilao offers support for those willing to return to their hometown stores, facilitating family reunification [5] - The company's welfare programs are seen as a benchmark in the industry, demonstrating a commitment to employee care and support [5]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative return of over 20% within the next six months [8][16]. Core Insights - The company reported a revenue of 42.8 billion yuan for 2024, representing a year-on-year growth of 3.1%. Core operating profit reached 6.23 billion yuan, up 18.7% year-on-year, and net profit attributable to shareholders was 4.71 billion yuan, an increase of 4.6% [1]. - The company has initiated a franchise business, successfully launching 13 franchise restaurants in 2024, contributing 16.71 million yuan in revenue. Over 70% of franchise applications are from third-tier cities and below [4]. - The company has also launched the "Pomegranate Plan" to encourage the incubation and development of new restaurant brands, resulting in 11 new brands with a total of 74 stores, generating 480 million yuan in revenue, a year-on-year increase of 39.6% [4]. Financial Performance - In 2024, the company's restaurant system sales increased by 3% year-on-year, with same-store sales growing by 3.6% [2]. - The average table turnover rate for self-operated restaurants was 4.1 times per day, an increase of 0.3 times year-on-year [2]. - The overall average customer spending was 97.5 yuan, a decrease of 1.6% year-on-year, attributed to changes in the consumption structure [2]. Cost and Efficiency - The cost of raw materials accounted for 37.9% of revenue, down 3.0 percentage points year-on-year due to lower procurement prices. Employee costs increased to 33.0%, up 1.5 percentage points, reflecting higher wages and benefits [3]. - The company plans to distribute a final dividend of 0.507 HKD per share, alongside an interim dividend of 0.391 HKD, resulting in an overall dividend payout ratio of approximately 95% for 2024 [5]. Future Outlook - The company is expected to continue optimizing store operating efficiency and expanding its franchise business, with projected net profits for 2025-2027 at 5.3 billion, 5.86 billion, and 6.53 billion yuan respectively, corresponding to PE ratios of 18, 16, and 15 times [6].