Glonghui, March 29 | Bank of America Securities said that Haidilao's performance last year was in line with Yingxi's forecast, and the dividend payout ratio increased by 50 percentage points to 90% year-on-year, which was a major surprise. The company's revenue last year increased 34% year-on-year to 41.4 billion yuan, and net profit after tax increased 2.27 times year-on-year to 4.5 billion yuan, with a net profit margin of 10.9%. The company maintained a conservative expansion plan, and the number of authorized stores increased in units this year. Operating margins have returned to pre-epidemic levels from 2018 to 2019, and the bank is expected to have limited room for profit margin expansion. The bank raised the company's profit forecast by 3% to 7% for this year and next two years. The target price was raised from HK$16 to HK$18, and the target price-earnings ratio was raised from 14 times to 15 times, reflecting the potential upside brought about by the licensing business in the medium term. Based on its reasonable valuation, the bank maintained a “neutral” rating for Haidilao. Although the licensing business brings potential promise, it is still too early to predict that it will make a meaningful contribution because it is currently in the early stages of development.