The Zhitong Finance App learned that UBS released a research report stating that it reaffirmed the “buy” rating of Haidilao (06862), and the target price was lowered to HK$16.3. Haidilao's performance for the first half of the year was broadly in line with expectations. Revenue and profit increased 8% and remained flat, respectively, to RMB 22.3 billion and RMB 1.8 billion. Revenue was roughly in line with the bank's forecast; net profit was 3% lower than the bank's forecast, mainly due to a decrease in net income from financial assets taken into account at fair value and an increase in losses from the sale of property, plant and equipment. During the period, the company's profit before interest and tax (EBIT) increased 9% year on year, 3% higher than the bank's forecast; the EBIT profit margin was also 0.4 percentage points higher than the bank's forecast, and the gross margin was 0.4 percentage points higher; the dividend ratio was about 100%, up from 95% in the first half of last year, exceeding the bank's forecast.
UBS said that Haidilao's operating performance from July to August was superior to the bank's expectations, and operating profit margins for the first half of the year were still resilient against the backdrop of macroeconomic uncertainty. During the period, the average daily turnover rate improved slightly year-on-year in July and August, and recorded month-on-month growth, mainly due to the peak summer season and the launch of IP-themed products and marketing activities. In the first half of the year, 6 stores (including franchise stores) were opened. Management plans to maintain the total number of stores opened at Haidilao Restaurant throughout the year, further expand the network of different store types to high- and low-tier cities, and upgrade or relocate some old stores.