CICC forecasts that Super Hi will achieve net income attributable to the parent company of 24.6183, 51.2254, and 67.653 million USD from 2024 to 2026.
According to the Securities Times app, CICC released a research report stating that it has initiated coverage on Super Hi (09658) and assigned a "buy" rating. The company's single-store model continues to be optimized, with new stores quickly achieving break-even. The bank is bullish on the development space of the hotpot industry in the international market and the company's future prospects. It is expected that the company will achieve revenues of 0.83, 0.976, 1.129 billion USD from 2024 to 2026, and achieve net income attributable to the parent company of 24.6183, 51.2254, 67.653 million USD. In the large-scale and diversified competitive landscape of the international dining market, the company has broad development space.
Changjiang Securities' main points are as follows:
The outlook for Chinese dining going global is broad, with hot pot having unique advantages.
Chinese cuisine has a long history of going global and has developed for many years. The conditions for domestic dining brands to go global are mature, creating new opportunities overseas, while policies encourage speeding up the process of going global. In 2022, the international dining service market has recovered to over 3 trillion USD, with Chinese cuisine accounting for approximately 10%. In recent years, with the continuous increase in overseas Chinese population and the increasing influence of Chinese culinary culture, the scale of Chinese cuisine has grown faster than the overall international dining service market, increasing its share in the international dining market. In addition, the overseas Chinese cuisine market has a wide distribution and a diversified competitive landscape, offering vast opportunities for Chinese cuisine to go global. Hotpot, as the most popular category of Chinese cuisine, has advantages such as high standardization, diverse ingredient selection, and strong profitability, allowing it to quickly achieve localization, rapid expansion, and potentially lead the way.
Strong brand barriers, vast space for opening stores.
As a leading dining brand in China, Haidilao has firmly occupied the minds of domestic consumers through its unique service format and dining experience. In recent years, its ranking in the top 100 Chinese catering enterprises has steadily increased. After going global, in addition to the preference of overseas Chinese for the company, the company's brand strength has gained international recognition. From 2019 to 2024, it has been consistently ranked in the "Top 25 Global Dining Brand Value" and ranked first in global dining brand strength in 2024. With the recovery of overseas customer flow, revenue growth coupled with operational efficiency improvements is expected to help continuously reduce costs. Referring to the domestic stores of Haidilao, there is still room for further optimization in Super Hi’s single-store model. By analyzing factors such as the number of overseas Chinese and population distribution, similar to the overseas expansion process of Japan's "Toridoll," the bank believes that the company has a wide range of future opportunities to open stores.
