Gelonghui, April 1 | Guotai Junan released a research report saying that maintaining Haidilao's “gain” rating, considering the gradual recovery in the turnover rate and significant results in cost reduction and efficiency, the net profit forecast for 2024-2025 is 525.8 billion yuan, an additional forecast of 6.4 billion yuan for 2026, with a target price of HK$20.43. The company achieved net profit of 4.5 billion yuan/ +175% in 2023, and the net profit margin to mother was 10.9% /+5.6pct. The dividend rate reached 90% for the first time, corresponding to a dividend rate of about 4.7% in 2023. Under pressure from mid-term optional consumer valuations, catering companies gradually switched to more stable return varieties to enhance the appeal of basic allocations. According to the report, the volume of Haidilao was significantly superior to the price, as reflected in the fact that the company's turnover rate in Tier 1 to Tier 3 cities was rising year over year. Among them, the first-tier/second-tier and third-tier and below/mainland/overseas/overall turnover achieved a month-on-month increase of +12/11/13/15/2/ -15% month-on-month, while the customer unit price fell by -4/-3/-4/-1/ -4% month-on-month. The trend of cost performance ratio continues. The company distributed dividends of about 4.05 billion yuan, corresponding to a dividend rate of about 4.7% in 23 years. Under pressure from mid-term consumer valuations, catering companies are shifting to more stable returns, which are more attractive in terms of basic allocation.