Jinwu Financial News | Minsheng Securities released a research report saying that Haidilao (06862) released the 2023 annual results announcement. In 2023, the company's revenue was 41,453 billion yuan/year over year +33.55%, including restaurant operating revenue of 39.613 billion yuan/year on year +36.19%; profit before tax of 5.833 billion yuan/year on year +175.45%; net profit to mother of 4.499 billion yuan/year on year +174.59%; basic profit per share of 0.83 yuan/year on year; net profit per share of 10.85%/year on year + 5.57pcts.
According to the bank, the company's revenue increased steadily in 2023, the net profit to the mother increased significantly, and the net interest rate to the mother improved. We believe this can be attributed to the Woodpecker/Hard Bone Plan's optimization effect on the company's store matrix, cost structure, operating efficiency and management structure; the decline in takeout business revenue may be due to the return of consumer demand to normal and the decline in takeout demand since 23 years.
According to the bank, Haidilao announced the introduction of a franchise model on March 4, 2024. The company uses a hosting franchise model that is different from traditional franchising. Haidilao is responsible for the franchisee store operation/performance assessment/personnel recruitment/supply chain, etc., to ensure that the quality of franchise stores is on par with direct-run stores. In the future, it is expected to become a new profit growth point for the company while ensuring the quality of operations.
The bank predicts that the company's organizational strength/supply chain barriers are deep, internal reforms are progressing, combined with 23 years of offline passenger flow restoration, and the opening of the dine-in scene, which is expected to gradually return to a steady state of operation and promote a highly flexible recovery in performance. The company is expected to achieve net profit of 51.41/58.41/6.461 billion yuan in 24/25/26, with a corresponding PE value of 17X/15X/13X, maintaining a “recommended” rating.