Zheshang Securities' research report pointed out that Te Hai International (09658) achieved a revenue of 0.371 billion US dollars in the first half of the year (+15% YoY), and the revenue growth was mainly driven by the improvement of operational efficiency and the increase in turnover rate. In the first half of 2024, the net income attributable to shareholders was -4.58 million US dollars. The company reports in US dollars, and the exchange only affects the financial statements and does not reflect the actual operations. If the exchange gains and losses are deducted, the company achieved a net profit of approximately 14.88 million US dollars in the first half of 2024, with a net profit margin of about 4%. Since the second half of 2022, the net profit after deducting the exchange gains and losses has been positive for 4 consecutive half-years, showing outstanding performance. Deducting the exchange gains and losses, the sustained outstanding net profit mainly results from the improvement in the proportion of actual rental costs due to the increase in turnover rate and the significant optimization of depreciation and amortization expenses.
The bank pointed out that as a leading overseas Chinese food brand, the company has broad prospects with the recovery of overseas consumption and the empowerment of brand advantages and newly established supply chains. The bank predicts that the company will achieve a net income attributable to shareholders of 33/50/66 million US dollars in 2024-2026, with growth rates of 30%/49%/33% respectively. The corresponding P/E ratios are 30/20/15 times. Considering the company's development stage, the bank maintains a "hold" rating.
