SUPER HI INTERNATIONAL HOLDING LTD. Sponsored ADR (HDL) AI Stock Analysis

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SUPER HI INTERNATIONAL HOLDING LTD. Sponsored ADR

(NASDAQ:HDL)

Rating:60Neutral

Price Target:

$22.00

▲(15.12%Upside)

HDL's overall stock score is driven primarily by strong financial performance, suggesting solid growth potential and profitability. However, technical analysis and valuation concerns, particularly a high P/E ratio and lack of dividend yield, temper the outlook.

Positive Factors

Earnings

Operating efficiency is still the key earnings growth driver.

Management

Gained further confidence in the company's operational efficiency and quality expansion initiatives brought by new CEO.

Negative Factors

Store Expansion

Further and sustainable re-rating would require an acceleration in store openings, especially outside Asia, but this lacks visibility in the current pipeline.

SUPER HI INTERNATIONAL HOLDING LTD. Sponsored ADR (HDL) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.29B

Dividend YieldN/A

Average Volume (3M)2.42K

Price to Earnings (P/E)32.7

Beta (1Y)0.53

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees13,057

SectorGeneral

Sector StrengthN/A

IndustryRestaurants

Share Statistics

EPS (TTM)0.20

Shares Outstanding65,029,900

10 Day Avg. Volume3,766

30 Day Avg. Volume2,416

Financial Highlights & Ratios

PEG Ratio0.17

Price to Book (P/B)3.11

Price to Sales (P/S)0.00

P/FCF Ratio12.79

Enterprise Value/Market Cap0.97

Enterprise Value/Revenue0.44

Enterprise Value/Gross Profit5.47

Enterprise Value/Ebitda3.18

Forecast

1Y Price Target

$22.00

Price Target Upside15.12% Upside

Rating ConsensusHold

Number of Analyst Covering1

SUPER HI INTERNATIONAL HOLDING LTD. Sponsored ADR Business Overview & Revenue Model

Company DescriptionSuper Hi International Holding Ltd., an investment holding company, operates Haidilao-branded Chinese cuisine restaurants in Asia, North America, Europe, Oceania, and internationally. The company is involved in the food delivery business. It also engages in the sale of hot pot condiment products and food. The company was incorporated in 2022 and is headquartered in Singapore.

How the Company Makes MoneySUPER HI INTERNATIONAL HOLDING LTD. generates revenue primarily through its restaurant operations. The company's key revenue streams include direct sales from its dining establishments, which encompass food and beverage sales. Additionally, the company may earn income from franchising opportunities, where it allows third parties to operate restaurants under its brand, providing a steady stream of royalty fees. Partnerships with local suppliers and strategic marketing initiatives also play a significant role in enhancing the company's profitability and expanding its market reach.

SUPER HI INTERNATIONAL HOLDING LTD. Sponsored ADR Earnings Call Summary

Earnings Call Date:May 21, 2025

(Q3-2024)

% Change Since: -11.53%|

Next Earnings Date:Sep 02, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed sentiment. On the positive side, Super Hi International demonstrated significant revenue growth, improved profit margins, and successful marketing initiatives. However, challenges such as construction delays, high labor costs, and underperforming stores in the UK were notable concerns.

Q3-2024 Updates

Positive Updates

Increased Revenue and Customer Base

Super Hi International reported a Q3 revenue of USD 198.6 million, marking a 14.6% increase year-over-year. The company also saw a 4.2% increase in customer visits, totaling 7.4 million customers.

Improved Profit Margins

Operating profit margin increased to 7.5%, up by 1.8 percentage points year-over-year. This improvement was attributed to better operational efficiency and cost control.

Successful Marketing Initiatives

A crossover event with a well-known video game attracted over 600,000 customers, and more than 12,000 co-branded dishes were sold.

Expansion and Innovation

Opened 9 new stores in 2024 with plans for more, including expansion into lower-tier cities and new markets. Initiated the 'pomegranate project' to explore new restaurant formats.

Negative Updates

Challenges in Store Expansion

No new stores were opened in the third quarter due to construction and preparation delays.

Cost Pressures

Employee costs increased by 0.9 percentage points due to higher minimum wages in certain countries. Labor costs remain a significant expense at 33.1% of revenue.

Operational Challenges in the UK

Two stores in the UK showed slower table turnover rates, impacting overall performance. Efforts are ongoing to ramp up operational results.

Company Guidance

During the Q3 2024 earnings call for Super Hi International, several key metrics and strategic initiatives were highlighted by the executives. The company reported a revenue of USD 198.6 million, marking a 14.6% increase year-over-year, while the operating profit margin improved to 7.5%, up 1.8 percentage points. The average table turnover rate grew to 3.8 rounds, welcoming 7.4 million customers, a 4.2% increase. The firm also emphasized operational enhancements through management spreadsheets and dual management policies, aiming to boost service quality and efficiency. Notably, the average spending per customer rose by USD 2.1, attributed to menu adjustments and marketing efforts. The company continues to explore market expansion, with nine new stores opened year-to-date and plans for more, including ventures into lower-tier cities and across regions like North America and Southeast Asia. Additionally, Super Hi International is focused on brand incubation and supply chain optimization, aiming to become a leading global integrated restaurant group.

SUPER HI INTERNATIONAL HOLDING LTD. Sponsored ADR Financial Statement Overview

Summary

The company demonstrates strong revenue growth and improved profitability, with significant enhancements in EBIT and EBITDA margins. However, financial health is slightly hindered by a concerning debt-to-equity ratio despite strong cash flows and improving equity positions.

Income Statement

Positive

The company shows a strong revenue growth trajectory, with a consistent increase over the past years. Gross profit and net income have improved significantly, indicating better cost management and profitability. The EBIT and EBITDA margins have also improved, reflecting enhanced operational efficiency.

Balance Sheet

Neutral

The balance sheet reveals a solid equity position with a positive net debt situation, suggesting sound financial health. However, the debt-to-equity ratio remains a concern, indicating potential leverage risks. Improved stockholders' equity over time suggests strengthening financial resilience.

Cash Flow

Positive

Cash flow analysis indicates robust operating cash flows and positive free cash flow growth, showcasing strong cash generation capabilities. Both operating and free cash flow to net income ratios are healthy, demonstrating efficient cash conversion and a strong liquidity position.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	778.31M	686.36M	558.49M	312.52M	221.90M
Gross Profit	273.68M	225.61M	100.51M	-14.14M	-8.29M
EBITDA	122.75M	129.24M	61.95M	-60.55M	13.53M
Net Income	21.80M	25.26M	-41.27M	-150.82M	-53.88M
Balance Sheet
Total Assets	684.42M	576.88M	576.11M	626.73M	601.59M
Cash, Cash Equivalents and Short-Term Investments	254.72M	152.91M	97.56M	129.46M	57.58M
Total Debt	212.63M	202.94M	242.30M	728.32M	560.97M
Total Liabilities	322.76M	304.76M	334.07M	813.91M	668.56M
Stockholders Equity	360.03M	270.09M	239.81M	-187.18M	-66.97M
Cash Flow
Free Cash Flow	84.95M	81.07M	3.40M	-72.36M	-114.61M
Operating Cash Flow	119.70M	114.05M	63.90M	-4.92M	-4.39M
Investing Cash Flow	-27.62M	-13.55M	-36.71M	-87.66M	-92.28M
Financing Cash Flow	12.58M	-43.79M	-25.74M	118.97M	117.60M

SUPER HI INTERNATIONAL HOLDING LTD. Sponsored ADR Technical Analysis

Technical Analysis Sentiment

Negative

Last Price19.11

Price Trends

50DMA

20.55

Negative

100DMA

21.85

Negative

200DMA

21.42

Negative

Market Momentum

MACD

-0.33

Negative

RSI

46.12

Neutral

STOCH

48.94

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HDL, the sentiment is Negative. The current price of 19.11 is below the 20-day moving average (MA) of 19.53, below the 50-day MA of 20.55, and below the 200-day MA of 21.42, indicating a bearish trend. The MACD of -0.33 indicates Negative momentum. The RSI at 46.12 is Neutral, neither overbought nor oversold. The STOCH value of 48.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HDL.

SUPER HI INTERNATIONAL HOLDING LTD. Sponsored ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAKE	74 Outperform	$3.15B	19.94	46.60%	1.71%	4.42%	48.23%
PTLO	72 Outperform	$894.04M	26.47	7.37%	―	4.57%	6.89%
FWRG	69 Neutral	$1.06B	103.50	1.86%	―	14.43%	-53.71%
HDL	60 Neutral	$1.29B	32.70	12.11%	―	―	―
GENK	59 Neutral	$124.97M	36.29	-1.62%	0.79%	14.40%	-114.79%
SG	58 Neutral	$1.56B	―	-19.79%	―	11.10%	18.05%
Sector *	57 Neutral	$5.65B	22.83	-28.61%	5.63%	10.25%	-31.59%

* General Sector Average

Performance Comparison

HDL

SUPER HI INTERNATIONAL HOLDING LTD. Sponsored ADR

19.43

1.46

8.12%

CAKE

Cheesecake Factory

64.14

27.27

73.96%

FWRG

First Watch Restaurant Group

17.92

2.05

12.92%

PTLO

Portillo's

11.44

2.07

22.09%

Sweetgreen

13.33

-11.50

-46.31%

GENK

GEN Restaurant Group, Inc. Class A

3.79

-4.48

-54.17%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 23, 2025