HAIDILAO(HK:06862)2025-08-26 01:19Summary of Haidilao International Holding Ltd 1H25 Results Conference Call Company Overview - Company: Haidilao International Holding Ltd - Industry: Consumer (Restaurant Sector) - Region: Asia Pacific, primarily China Key Financial Results - Revenue: - 1H24: Rmb21,491 million - 2H24: Rmb21,264 million - 1H25: Rmb20,703 million - Year-over-Year (YoY) decline: 4% [2] - Operating Profit: - 1H25: Rmb2,203 million - YoY decline: 18% [2] - Net Profit: - 1H25: Rmb1,759 million - YoY decline: 14% [2] - Gross Profit Margin (GPM): - 1H25: 60.2%, down from 63.2% in 1H24 [2] - Operating Profit Margin (OPM): - 1H25: 10.6%, down from 14.9% in 1H24 [2] - Net Profit Margin (NPM): - 1H25: 8.5%, down from 12.6% in 1H24 [2] Cost Analysis - Cost of Sales: - Increased to Rmb8,243 million in 1H25, a 2% decrease YoY [2] - Staff Costs: - Rmb6,988 million in 1H25, a 2% decrease YoY [2] - Other Expenses: - Increased by 23% YoY, attributed to high business development and delivery platform fees [7] Operational Metrics - Number of Restaurants: - Mainland China: 1,299 (down from 1,320 in 2H24) [2] - Table Turn: - Mainland China: 3.8 times, down 9% YoY [2] - Average Spending Per Guest: - Mainland China: Rmb96, unchanged YoY [2] Market Position and Valuation - Stock Rating: Overweight [4] - Price Target: HK$17.50, representing an 18% upside from the current price of HK$14.88 [4] - Market Capitalization: Rmb73,885 million [4] - Expected EPS Growth: Projected 19% CAGR from 2025 to 2027 [8] Risks and Opportunities - Upside Risks: - Faster macroeconomic recovery - Better-than-expected demand recovery - Accelerated new store openings [9] - Downside Risks: - Slower recovery in table turn - Raw material cost inflation - Delays in new store openings [9] Dividend Information - Interim Dividend: HK$0.338, a 14% decrease YoY, with a payout ratio of 95% [7] Conclusion Haidilao International Holding Ltd reported a challenging first half of 2025 with declines in revenue, operating profit, and net profit. The company faces a tough operating environment but maintains a positive long-term outlook with potential for recovery and growth in the coming years.