External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Haidilao International Holding / Equity Bottom-Up

<ul><li>1H25 results were weak but the negatives should have already priced in.</li><li>We expect SSS to likely stabilize in 2H25E, with the support of different company specific initiatives.</li><li>We also believe that a potential turnaround could happen, especially when the store expansion and new brands development start to accelerate.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

1H25 results were weak but the negatives should have already priced in.We expect SSS to likely stabilize in 2H25E, with the support of different company specific initiatives.We also believe that a potential turnaround could happen, especially when the store expansion and new brands development start to accelerate.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Haidilao (6862 HK) - Downside Protected and More Reforms Start

<ul><li>FY24 results were a small beat, mainly from the robust GP margin expansion.</li><li>Going into FY25E, though the SSSG may be only be stable, we are confident on a mild turnaround, driven by potential store expansion acceleration and margin expansion (better input costs, more efficient supply chain and greater adoption of multi-store management, etc.).</li><li>Maintain BUY and raise TP to HK$ 20.20, based on 18x FY25E P/E (up from 16x, due to faster expansion and sector re-rating). </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

FY24 results were a small beat, mainly from the robust GP margin expansion.Going into FY25E, though the SSSG may be only be stable, we are confident on a mild turnaround, driven by potential store expansion acceleration and margin expansion (better input costs, more efficient supply chain and greater adoption of multi-store management, etc.).Maintain BUY and raise TP to HK$ 20.20, based on 18x FY25E P/E (up from 16x, due to faster expansion and sector re-rating). Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Haidilao (6862 HK) - Potential store and margin expansion ahead

<ul><li>Haidilao’s 1H24 results were roughly inline, but the margin was soft, given the meaningful SSSG.</li><li>Going into 2H24E, we can still see certain pressure like drags from macro environment, high base for SSSG and staff costs inflation etc.</li><li>In our view, the extra upside could be from the acceleration in new stores opening, further plans to boost efficiency and new brands’ development. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Haidilao’s 1H24 results were roughly inline, but the margin was soft, given the meaningful SSSG.Going into 2H24E, we can still see certain pressure like drags from macro environment, high base for SSSG and staff costs inflation etc.In our view, the extra upside could be from the acceleration in new stores opening, further plans to boost efficiency and new brands’ development. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Haidilao (6862 HK) - Waiting for New Initiatives to Shine, with Yields

<ul><li>What is new? Haidilao (6862 HK, BUY) and Super Hi (9658 HK, NR) have announced a management change.</li><li>Yang Lijuan resigned as the executive director and CEO of Haidilao and will become the executive director and CEO of Super Hi.</li><li>Gou Yiqun will be appointed as the executive director and CEO of Haidilao. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

What is new? Haidilao (6862 HK, BUY) and Super Hi (9658 HK, NR) have announced a management change.Yang Lijuan resigned as the executive director and CEO of Haidilao and will become the executive director and CEO of Super Hi.Gou Yiqun will be appointed as the executive director and CEO of Haidilao. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Haidilao (6862 HK) - Our View on Management Changes

<ul><li>We think Haidilao’s downside is protected by its dividend (5.6% FY24E yield and the 90% payout ratio should sustain into the future), while the upside is highly dependent on its speed of store expansion (which is still very slow but we tend to think it will accelerate once the franchising model is finalized).</li><li>Hence, we maintain BUY with a TP of HK$ 21.52, based on a 20x FY24E P/E. Noted that in the long run, the lack of growth drivers is still a concern.</li><li>The momentum so far in 2024 is still intact. While the industry is still suffering (most of the brands are experiencing SSS decline), management highlighted that Haidilao’s table turnover has further increased by over 30% in Jan-Feb 2024 (table turnover for CNY/ Valentine’s Day were at around 5x/ 6x).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We think Haidilao’s downside is protected by its dividend (5.6% FY24E yield and the 90% payout ratio should sustain into the future), while the upside is highly dependent on its speed of store expansion (which is still very slow but we tend to think it will accelerate once the franchising model is finalized).Hence, we maintain BUY with a TP of HK$ 21.52, based on a 20x FY24E P/E. Noted that in the long run, the lack of growth drivers is still a concern.The momentum so far in 2024 is still intact. While the industry is still suffering (most of the brands are experiencing SSS decline), management highlighted that Haidilao’s table turnover has further increased by over 30% in Jan-Feb 2024 (table turnover for CNY/ Valentine’s Day were at around 5x/ 6x).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Haidilao (6862 HK) - Looking for Expansion Opportunities with Downside Protection

China

Haidilao International Holding Ltd. operates Chinese cuisine restaurant brand focusing on hot pot cuisine. The Company provides hot pots, soup bases, dipping sauces, drinks, prepared food, and other products. Haidilao International Holding opens restaurants in Taiwan, Hong Kong, Singapore, South Korea, Japan, and the United States.

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Haidilao International Holding (6862 HK)

Haidilao (6862 HK) - Downside Protected and More Reforms Start

1H25 results were weak but the negatives should have already priced in. We expect SSS to likely stabilize in 2H25E, with the support of different...

CMB International

Haidilao (6862 HK) - Potential store and margin expansion ahead

Maintain BUY and raise TP to HK$ 20.20, based on 18x FY25E P/E (up from 16x, due to faster expansion and sector re-rating).

CMB International

Haidilao (6862 HK) - Waiting for New Initiatives to Shine, with Yields

Going into 2H24E, we can still see certain pressure like drags from macro environment, high base for SSSG and staff costs inflation etc.

CMB International

Haidilao (6862 HK) - Our View on Management Changes

Yang Lijuan resigned as the executive director and CEO of Haidilao and will become the executive director and CEO of Super Hi.

CMB International

Haidilao (6862 HK) - Looking for Expansion Opportunities with Downside Protection

Hence, we maintain BUY with a TP of HK$ 21.52, based on a 20x FY24E P/E. Noted that in the long run, the lack of growth drivers is still a concern.

CMB International

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