Investment Rating - The report maintains a "Buy" rating for the company [9]. Core Insights - In Q3 2024, the company achieved revenue of $199 million, a year-on-year increase of 14.64%, and net profit of $37.66 million, marking a return to profitability [2][6]. - The company is positioned as a leader in the international Chinese dining market, benefiting from its unique service model, strong brand power, and rapid localization capabilities [6][8]. - The company is expected to generate revenues of $830 million, $976 million, and $1.129 billion from 2024 to 2026, with net profits projected at $24.62 million, $51.23 million, and $67.65 million respectively [8]. Revenue Breakdown - The primary revenue source remains restaurant operations, with Haidilao restaurant revenue at $191 million, accounting for 96.12% of total revenue, and a year-on-year growth of 14.5% [6][7]. - The takeaway segment saw an 8.3% year-on-year increase, driven by strengthened partnerships with local delivery platforms [6]. - Other business revenues grew by 21.4%, attributed to the recognition of Haidilao's condiments and brand products in local markets [6]. Operational Performance - Total customer traffic reached 7.4 million in Q3 2024, a 4.23% increase year-on-year, with a table turnover rate of 3.8 times per day [7]. - Average daily revenue per restaurant was $17,700, reflecting a 9.94% year-on-year increase, while same-store sales grew by 5.6% [7]. - The overall average spending per customer was $25.80, an increase of 8.86% year-on-year [7]. Cost Management - The company reported a gross profit margin of 7.5% in Q3 2024, an increase of 1.8 percentage points year-on-year, due to cost optimization across various expense categories [7]. - Key cost components included raw materials (32.96%), employee costs (33.15%), rent (2.70%), and utilities (3.77%), with some costs showing slight year-on-year changes [7]. Store Expansion Strategy - The company continues to implement a bottom-up store opening strategy, with a net increase of 7 restaurants year-on-year, totaling 121 locations as of September 30, 2024 [8]. - The majority of new openings are concentrated in Southeast Asia, which remains a key market for the company [8].

Investment Rating - The report maintains a "Recommend" rating for Tehai International (9658 HK) [4] Core Views - Tehai International achieved strong Q3 2024 results with revenue of $199 million, up 14 6% YoY, and operating profit of $15 million, up 52 0% YoY [3] - The company's profitability improved significantly, with operating margin reaching 7 5%, up 1 8 percentage points YoY, and net profit attributable to shareholders turning positive at $37 72 million [3] - Tehai International's localization strategy and Red Pomegranate Plan are driving market penetration and synergies with its parent brand Haidilao [3] Business Performance - Restaurant revenue grew 14 5% YoY to $191 million, driven by both higher traffic and average spending per customer [3] - Overall table turnover rate increased to 3 8 times per day, with the highest rate in East Asia at 4 3 times per day [3] - Average customer spending rose 8 9% YoY to $25 8, with the highest in North America at $43 5 [3] - Total customer traffic reached 7 4 million, up 4 2% YoY, supporting growth in delivery and other businesses [3] Store Network and Operations - The company had 121 restaurants as of Q3 2024, with no new openings in the quarter but a net increase of 6 stores year-to-date [3] - Same-store sales grew 5 6%, with East Asia showing the strongest growth at 20 5% [3] - Same-store table turnover rate remained stable at 3 7 times per day [3] Cost Management and Profitability - Gross margin improved to 67%, up 1 4 percentage points YoY, driven by supply chain optimization and process improvements [3] - Employee cost ratio was 33 1%, up 0 2 percentage points, while rental and related expenses decreased to 2 7%, down 0 4 percentage points [3] - Other expenses ratio decreased to 9 4%, down 1 2 percentage points [3] Financial Forecasts - Revenue is expected to grow from $794 million in 2024 to $1 008 billion in 2026, with a CAGR of 12 6% [3][28] - Net profit attributable to shareholders is projected to increase from $38 million in 2024 to $68 million in 2026 [3][28] - The company's P/E ratio is forecasted to decline from 28x in 2024 to 16x in 2026, reflecting expected earnings growth [3][28] Valuation and Metrics - The stock is trading at 12 72 HKD as of November 26, 2024 [4] - Key valuation metrics include a P/B ratio of 2 9x for 2024 and 2 2x for 2026, and an EV/EBITDA of 6 56x for 2024 and 5 03x for 2026 [28]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 18.68 [4][7]. Core Insights - The company reported a revenue of USD 19.9 million in Q3 2024, representing a year-over-year increase of 14.6%. Operating profit reached USD 14.9 million, up 52.0% year-over-year, with an operating margin of 7.5%, an increase of 1.8 percentage points [1]. - The company has successfully balanced store opening speed with single-store quality, leading to improved same-store sales and turnover rates. The Southeast Asia region showed stable growth, while management adjustments in East Asia yielded significant results [1][2]. - The new CEO has focused on enhancing global store management and supply chain efficiency, which is expected to continue driving high turnover rates into the peak season [1][3]. Revenue and Profitability - Q3 2024 restaurant and takeaway revenue reached USD 19.1 million and USD 0.03 million, respectively, with year-over-year increases of 14.5% and 8.3%. The average daily sales per store were USD 17,700, up 9.9% year-over-year [2]. - The gross margin improved to 67.0%, an increase of 1.5 percentage points year-over-year, driven by higher average spending per customer and global supply chain optimization [2]. Store Expansion and Management - As of Q3 2024, the company operated 121 stores across various regions, with a net addition of 6 stores in the first nine months of 2024. The company is actively implementing the "Pomegranate Plan" to explore new store models, including halal hot pot and noodle shops [3]. - The management has introduced a dual-manager policy to enhance store performance and employee motivation, which has shown positive results in Q3 [3]. Financial Projections - The report revises the earnings per share (EPS) estimates for 2024, 2025, and 2026 to USD 0.06, USD 0.08, and USD 0.09, respectively, reflecting the company's growth potential and improved profitability [4][6]. - The target price of HKD 18.68 corresponds to a 30x price-to-earnings (PE) ratio based on the 2025 earnings estimates, indicating a premium valuation due to the company's leading position in the Chinese restaurant market [4][12].

Financial Performance - Revenue for Q3 2024 was $198.6 million, an increase of 14.6% compared to $173.3 million in Q3 2023[6] - Operating profit for the quarter was $14.9 million, a 52.0% increase from $9.8 million in Q3 2023[13] - The company reported a net profit of $37.7 million for the quarter, compared to a loss of $1.4 million in Q3 2023[13] - The net profit for the three months ended September 30, 2024, was $37.656 million, a significant recovery from a net loss of $1.402 million in the same period of 2023[33] - The company reported a total comprehensive income of $24.070 million for the three months ended September 30, 2024, compared to $1.617 million in the prior year[33] Customer Traffic and Sales - Total customer traffic exceeded 7.4 million, a 4.2% increase from 7.1 million in the same period last year[8] - Same-store sales growth rate was 5.6%[9] - Same-store sales for Southeast Asia reached $96.839 million, up from $93.131 million in the previous year, reflecting a growth of 7.3%[24] - The average daily sales per store in North America increased to $21.8 thousand from $20.9 thousand, indicating a growth of 4.3%[24] - The total number of same-store locations as of September 30, 2024, was 106, with 65 in Southeast Asia, 13 in East Asia, and 18 in North America[24] Operational Metrics - Operating profit margin was 7.5%, up from 5.7% in Q3 2023, reflecting a 1.8 percentage point improvement[10] - The number of restaurants increased to 121, net adding 6 restaurants since the end of 2023[6] - Average table turnover rate was 3.8 times per day, compared to 3.7 times per day in the same period last year[7] - The average table turnover rate remained stable at 3.7 times per day across all regions[24] Cash Flow and Assets - Cash and cash equivalents increased to $215.162 million as of September 30, 2024, up from $152.908 million at the end of 2023[34] - The company’s non-current assets totaled $355.875 million as of September 30, 2024, slightly down from $357.921 million at the end of 2023[34] - Net cash provided by operating activities for the three months ended September 30, 2024, was $40,699 thousand, compared to $41,311 thousand for the same period in 2023[39] - Net cash used in investing activities for the three months ended September 30, 2024, was $(52,921) thousand, a significant increase from $(19,911) thousand in the prior year[39] - Net cash used in financing activities for the three months ended September 30, 2024, was $(11,440) thousand, compared to $(10,022) thousand in the same period last year[39] - The net increase in cash and cash equivalents for the three months ended September 30, 2024, was $70,570 thousand, a turnaround from a decrease of $(43,032) thousand in the prior year[39] - Cash and cash equivalents at the beginning of the period were $140,659 thousand, up from $118,936 thousand a year earlier[39] - Cash and cash equivalents at the end of the period totaled $215,162 thousand, significantly higher than $75,271 thousand at the end of the same period in 2023[39] Future Plans - The company plans to reopen a temporarily closed restaurant in Southeast Asia as a second brand restaurant in the near future[6]

Investment Rating - The report gives a "Buy" rating for the company, indicating a positive outlook for its future performance [6][8]. Core Insights - Tehai International, spun off from Haidilao's overseas operations, has established a significant presence in the global market with 122 stores across 13 countries as of June 30, 2024, primarily in Southeast Asia [3][16]. - The company reported a revenue of $371 million in the first half of 2024, reflecting a year-over-year growth of 14.5%, with a notable increase in customer traffic [4][24]. - The international Chinese cuisine market is projected to grow at a CAGR of 7.8% from 2022 to 2027, presenting substantial opportunities for the hot pot segment, where Tehai International holds a competitive advantage [4][5]. Summary by Sections Company Overview - Tehai International operates outside Greater China, focusing on markets in North America, Europe, and Oceania, with a strong foothold in Southeast Asia [3][16]. - The company has a concentrated ownership structure, with the founders holding a significant stake [19]. Financial Performance - The company achieved its first profitability in 2023, with a net profit of $26 million, and is expected to continue growing with projected revenues of $800 million, $933 million, and $1.072 billion for 2024, 2025, and 2026 respectively [6][24]. - The average daily revenue per restaurant has shown an upward trend, increasing from $15,400 in 2022 to $17,200 in 2024 [4][30]. Market Analysis - The global Chinese cuisine market was valued at $306.1 billion in 2022, with hot pot accounting for 11.2% of this market, indicating a strong growth potential for Tehai International [4][5]. - The company has a robust brand presence, ranking 14th among global restaurant brands and first among Chinese brands in 2024 [5]. Operational Highlights - Tehai International's management team is experienced, with the new CEO having over 27 years in the industry, contributing to effective operational strategies [21][23]. - The company has implemented a localized approach to enhance customer experience, achieving a 50% share of non-Chinese customers in 2023 [5][24]. Regional Performance - Southeast Asia remains the largest market for the company, contributing 55% of total revenue, while North America shows significant growth potential with an increase in store openings [34][36]. - The average table turnover rate has improved from 2.1 times per day in 2021 to 3.8 times in 2024, reflecting operational efficiency [27][31].

Investment Rating - The report initiates coverage on Tehai International (9658 HK) with a "Recommend" rating [6] Core Views - Tehai International, spun off from Haidilao's overseas operations, is a leading player in the international Chinese hotpot market with significant growth potential [3] - The company has demonstrated strong operational performance with revenue growth of 14 5% YoY in 24H1 and improving profitability metrics [4] - With 122 stores across 13 countries as of 2024H1, Tehai has established a solid foundation for international expansion, particularly in Southeast Asia and North America [3][4] - The global Chinese food market is projected to grow at a CAGR of 7 8% from 2022 to 2027, presenting significant opportunities for Tehai's expansion [4] Business Overview - Tehai International operates 122 stores globally as of 2024H1, with Southeast Asia accounting for 60 7% of total stores [3] - The company achieved revenue of $371 million in 24H1, with Southeast Asia contributing 54 9% of total revenue [4] - Key operational metrics show consistent improvement, with table turnover rate increasing from 3 3 times/day in 2022 to 3 8 times/day in 24H1 [4] - Store-level operating profit margin improved significantly from 4 1% in 2022 to 8 7% in 24H1 [4] Industry Analysis - The global Chinese food market reached $306 1 billion in 2022, with a projected CAGR of 7 8% through 2027 [4] - The international hotpot market was valued at $34 3 billion in 2022, accounting for 11 2% of the global Chinese food market [4] - The US represents the largest market for Chinese food internationally, accounting for 17 97% of the global market [46] - The hotpot market is expected to grow to $50 5 billion by 2027, with a CAGR of 8 0% [58] Competitive Advantages - Tehai benefits from Haidilao's strong brand recognition, ranking 14th in the 2024 Global Restaurant Brands Top 25 [5][61] - The company has established a robust management system with a three-tier structure and performance evaluation mechanisms [5] - Tehai maintains strong supply chain capabilities, leveraging Haidilao's existing infrastructure and partnerships [5] - Localization efforts have been successful, with non-Chinese customers accounting for approximately 50% of total customers in 2023 [5] Financial Projections - Revenue is projected to grow from $800 million in 2024 to $1 072 billion in 2026, representing a CAGR of 15 7% [6] - Net profit is expected to increase from $21 million in 2024 to $73 million in 2026 [6] - The company's PE ratio is forecasted to decline from 52x in 2024 to 15x in 2026 as profitability improves [6] Growth Drivers - Southeast Asia remains the core growth market, contributing 54 9% of revenue in 24H1 [4] - North America shows strong potential, with revenue contribution increasing to 20 7% in 24H1 [4] - The company's UE model shows consistent improvement, with daily revenue per store increasing from $15,400 in 2022 to $17,200 in 24H1 [4] - Same-store sales growth remains healthy at 8 2% in 24H1, with East Asia showing the strongest growth at 22 7% [41]

Investment Rating - The report assigns a "Buy" rating for the company, marking its initial coverage [4]. Core Insights - The report highlights Tehai International as a leader in the overseas expansion of Chinese cuisine, particularly hot pot, benefiting from its unique service model, strong brand recognition, and rapid localization capabilities. The company is well-positioned in the vast and fragmented international dining market, with significant growth potential [6][11]. - Tehai International is projected to achieve revenues of $830 million, $976 million, and $1.129 billion from 2024 to 2026, with net profits of $24.6183 million, $51.2254 million, and $67.653 million respectively [6]. Summary by Sections Company Overview - Tehai International, derived from Haidilao, has been expanding internationally since 2012 and became a prominent player in the overseas Chinese dining market. The company achieved its first profitability in 2023 and is set for dual listing on NASDAQ in 2024, which is expected to enhance its growth prospects [4][11]. Market Potential - The international restaurant service market exceeded $3 trillion in 2022, with Chinese cuisine accounting for approximately 10%. The growth of overseas Chinese communities and the increasing influence of Chinese culinary culture are driving the expansion of Chinese dining, particularly hot pot, which has advantages in standardization and profitability [5][25]. Financial Performance - Tehai International's revenue has been on an upward trajectory, with a significant recovery in customer traffic and table turnover rates. The company reported a customer traffic of 236,300 per store in 2023 and a table turnover rate of 3.5 times per day, recovering to 85% of 2019 levels [20][22]. - The company has optimized its management structure, leading to improved operational efficiency and a positive restaurant-level operating profit margin of 9% in 2023 [22][24]. Strategic Initiatives - The company has implemented various strategic plans, including the "Red Pomegranate Plan" in 2024, aimed at exploring innovative business models and enhancing operational efficiency [19][20]. Competitive Landscape - The international market for Chinese cuisine is characterized by a fragmented competitive landscape, with Tehai International ranking third among international Chinese dining brands. The company is well-positioned to capitalize on the growing demand for Chinese cuisine globally [36].

Financial Performance - The Group reported an interim revenue of $50 million for the six months ended June 30, 2024, representing a 20% increase compared to the same period last year[8]. - The company has provided a performance guidance of $100 million in revenue for the full year 2024, indicating a projected growth of 25%[8]. - Revenue for the six months ended June 30, 2024, increased to US$370,930,000, up from US$323,931,000 in the same period of 2023, representing a growth of 14.5%[13]. - Revenue from Haidilao restaurant operations reached US$356,488,000, compared to US$312,718,000 in the prior year, marking an increase of 13.9%[13]. - The Group reported a loss for the period of US$4,649,000, a decline from a profit of US$3,394,000 in the same period of 2023[13]. - Total comprehensive income for the period was $8,603,000, down from $14,960,000 in the same period last year[79]. - The company reported a loss attributable to owners of the Company of $4,583,000, compared to a profit of $3,541,000 in the prior year[79]. User Engagement and Market Expansion - User data showed a growth in active users to 1.2 million, up 15% year-over-year[8]. - The company is expanding its market presence in Southeast Asia, targeting a 30% increase in market share within the next year[8]. - Total guest visits to Haidilao restaurants reached 14.5 million, an increase of 17.9% from 12.3 million in the same period of 2023[14]. - The company opened 8 new restaurants in the first half of 2024, including 5 in Southeast Asia, 2 in North America, and 1 in East Asia[19]. Operational Efficiency - Gross profit margin improved to 40%, up from 35% in the previous year[8]. - Average daily revenue per restaurant was US$17,200, up from US$15,600, indicating a growth of 10.3%[14]. - The average table turnover rate improved to 3.8 times per day, an increase of 15.2% compared to 3.3 times per day in 2023[14]. - The restaurant level operating margin increased to 8.7%, compared to 8.3% in the same period last year, showing an improvement of 0.4 percentage points[14]. Research and Development - Research and development expenses increased by 10% to $5 million, focusing on innovative technologies[8]. - In the first half of 2024, the Group launched over 500 new products globally, enhancing customer satisfaction and brand influence[17]. Financial Management - Cash flow from operations was reported at $15 million, reflecting a 50% increase compared to the prior period[8]. - The Group's finance costs remained stable at US$4.3 million for the six months ended June 30, 2023, and US$3.9 million for the same period in 2024[39]. - The Group's inventories decreased by 10.7% to US$26.6 million as of June 30, 2024, from US$29.8 million as of December 31, 2023[40]. - The current ratio as of June 30, 2024, improved to 2.3 from 1.7 as of December 31, 2023, indicating better short-term financial health[43]. Staffing and Costs - Staff costs amounted to US$126.3 million for the six months ended June 30, 2024, representing a 17.3% increase from US$107.7 million for the same period in 2023[35]. - The number of Haidilao restaurants grew to 122, up from 115 in the previous year, reflecting a 6.1% increase[14]. - The average spending per guest decreased to US$24.6, down US$0.9 from US$25.5 in the same period last year, primarily due to exchange rate fluctuations[20]. Strategic Initiatives - The company is exploring potential acquisitions to enhance its product offerings and market reach[8]. - The Group aims to enhance customer dining experiences, expand the restaurant network, improve operational performance, and explore new business forms[21]. - The Group completed a dual-listing on NASDAQ in May 2024, focusing on customer satisfaction and employee effort as core missions[21]. Challenges and Risks - The increase in net foreign exchange loss was US$8.8 million, reaching US$19.5 million, impacting the net profit during the reporting period[21]. - Government grants decreased by US$1.4 million compared to the same period last year due to the cancellation of COVID-19-related restaurant subsidies in some countries[20]. - The Group's financial performance reflects significant fluctuations compared to the previous year, indicating potential challenges in revenue generation[123]. Shareholder Information - As of June 30, 2024, the company had 650,299,000 issued shares[55]. - Ms. Shu Ping holds a 51.69% interest in the company, representing 336,167,124 shares[54]. - The Group issued 3,096,600 ADSs at a price of US$19.56 per ADS in May 2024, raising total gross proceeds of US$60.57 million before expenses[41].

Investment Rating - The report assigns a "Buy" rating for Tehai International (9658.HK/HDL.US) with a target price of HKD 16.6 for the Hong Kong stock and USD 21.3 for the US stock, reflecting a potential upside of 30.7% and 37.4% respectively [1][3][4]. Core Insights - Tehai International's management has a long-term vision to enhance customer dining experiences, expand restaurant networks, improve operational performance, and explore new business formats, aiming to become a leading global integrated dining group [1]. - The company has seen a significant improvement in table turnover rates, with a year-on-year increase of 0.5 to 3.8 times in 1H24, attributed to enhanced employee KPI assessments and optimized business processes [1]. - The company plans to accelerate store openings starting in 2025, with a focus on Southeast Asia and North America, where there is still considerable room for growth [1]. - The management aims to enhance profitability through supply chain optimization, despite an increase in employee costs due to a focus on service quality [1]. - Tehai International is pursuing a multi-brand strategy to drive long-term growth, which may provide additional revenue streams and operational synergies [1]. Financial Summary - Revenue is projected to grow from USD 686 million in 2023 to USD 797 million in 2024, with a year-on-year growth rate of 16.2% [5][7]. - The net profit is expected to stabilize at USD 24 million in 2024, with a significant increase to USD 67 million in 2025, reflecting a growth rate of 181.3% [5][8]. - The company's gross margin is forecasted to remain stable around 65.9% through 2026, while the operating profit margin is expected to improve from 4.2% in 2023 to 10.6% in 2026 [5][6][7]. - The average table turnover rate in Southeast Asia is currently at 3.7, indicating that the market is not yet saturated [1]. Market Positioning - Tehai International's current market capitalization is approximately HKD 8.233 billion and USD 1.018 billion, with a trading range of HKD 8.0-18.3 and USD 13.9-30.0 over the past year [3][4]. - The company is positioned favorably compared to its peers, with a projected PE ratio of 21.6x for H shares in 2024 and 15.7x in 2025 [9].

社会服务/酒店餐饮 公 司 研 究 特海国际（09658.HK） 2024 年 09 月 01 日 翻台显著增长，换帅后期待开店和多品牌拓展加速 ——公司信息更新报告 投资评级：买入（维持） | --- | --- | |---------------------------|---------------------------| | | | | 初敏（分析师） | 李睿娴（联系人） | | chumin@kysec.cn | liruixian@kysec.cn | | 证书编号： S0790522080008 | 证书编号： S0790122120005 | 开 源 证 券 证 券 研 究 报 告 公司信息更新报告 | --- | --- | |-------------------------|--------------| | 日期 | 2024/8/30 | | 当前股价 ( 港元 ) | 12.660 | | 一年最高最低 ( 港元 ) | 18.260/7.950 | | 总市值 ( 亿港元 ) | 82.33 | | 流通市值 ( 亿港元 ) | 82.33 | | 总股本 ( 亿股 ) | ...