CCB International released a report stating that Haidilao's net income in the first half of the year dropped by 10% year-on-year to 2.033 billion yuan. Excluding one-time items, the core operation profit grew steadily, increasing by 13% year-on-year to 2.799 billion yuan, surpassing expectations. The bank believes that this is due to the improvement in table turnover rate and better-than-expected expansion of gross margin. During the period, the revenue increased by 13.8%, and the gross margin expanded by 1.7 percentage points to 61%. The bank mentioned that Haidilao's sales in July and August remained steady, thanks to the increase in summer traffic and improvement in operational efficiency. As the table turnover rate has returned to normal levels, the bank expects Haidilao to seize this opportunity to accelerate the expansion of sales outlets in the second half of the year, including the introduction of sub-brands and the increase in the number of self-operated and franchised stores. The bank expects the company's revenue in the second half of the year to grow by 15.1%, driven mainly by low double-digit growth in same-store sales, approximately 6.8% growth in sales outlets, approximately 10.5% growth in table turnover rate, and a 2% decline in average price.
The bank maintains its "outperform" rating on Haidilao, lowering its profit forecast for this year by 15% and lowering the target price from HKD 21 to HKD 17.9. The bank believes that due to Haidilao's cash on hand of 8.425 billion yuan in the first half of the year, it is believed that the company's dividend payout ratio will remain around 90% in the coming years, bringing sustainable returns to shareholders and supporting its valuation.
