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

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SUPER HI INTERNATIONAL HOLDING LTD. Sponsored ADR

(NASDAQ:HDL)

59Neutral

HDL shows strong financial performance with growing revenues and profitability, but high leverage remains a concern. Technical indicators suggest a lack of strong momentum, and the high P/E ratio raises valuation concerns. The absence of a dividend yield could limit investor appeal.

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. S&P 500 (SPY)

Market Cap

$1.40B

Dividend YieldN/A

Average Volume (3M)3.33K

Price to Earnings (P/E)62.2

Beta (1Y)0.36

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees13,057

SectorGeneral

Sector StrengthN/A

IndustryRestaurants

Share Statistics

EPS (TTM)0.34

Shares Outstanding65,029,900

10 Day Avg. Volume784

30 Day Avg. Volume3,329

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.31

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit8.10

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$25.00

Price Target Upside18.71% Upside

Rating ConsensusHold

Number of Analyst Covering0

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

Company DescriptionSUPER HI INTERNATIONAL HOLDING LTD. Sponsored ADR (HDL) is a company operating in the hospitality and food services sector. The company specializes in providing unique dining experiences through its restaurant chains, predominantly focused on offering high-quality, authentic cuisine. SUPER HI INTERNATIONAL HOLDING LTD. is known for its innovation in culinary offerings and exceptional customer service, catering to a diverse clientele across various regions.

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 Financial Statement Overview

Summary

The company has made notable progress in financial performance, with improvements in revenue, profitability, and cash flow metrics. Revenue grew by 22.87%, net income turned positive, and cash flow metrics are strong, indicating efficient cash generation. The balance sheet shows reduced leverage and improved equity, though past financial instability is a consideration.

Income Statement

Positive

The company has shown significant improvement in revenue and profitability. Revenue grew by 22.87% from 2022 to 2023, and net income turned positive, reflecting a net profit margin of 3.68% in 2023. The gross profit margin increased to 32.87%, and both EBIT and EBITDA margins improved to 5.33% and 18.83%, respectively. Overall, there's a positive trajectory in profitability, though the margins are relatively modest within the industry.

Balance Sheet

Positive

The balance sheet depicts a stable financial position with an equity ratio of 46.83% as of 2023, indicating a strong equity base relative to assets. The debt-to-equity ratio improved to 0.75, suggesting lower leverage. Return on equity (ROE) improved significantly to 9.35% due to positive net income. While improvements are evident, the company had negative equity in earlier years, indicating previous financial instability.

Cash Flow

Very Positive

Cash flow metrics show strong performance, with operating cash flow increasing significantly to $114 million in 2023. Free cash flow also improved, resulting in a free cash flow to net income ratio of 3.21. The operating cash flow to net income ratio is robust at 4.52, highlighting efficient cash generation relative to earnings. The positive growth trajectory in cash flow suggests improved financial health and operational efficiency.

Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
686.36M	558.49M	312.52M	221.90M	233.40M
	Gross Profit
225.61M	100.51M	-14.14M	-8.29M	7.86M
	EBIT
36.57M	14.09M	-79.75M	-52.92M	-27.33M
	EBITDA
129.24M	61.95M	-60.55M	13.53M	8.29M
	Net Income Common Stockholders
25.26M	-41.27M	-150.82M	-53.88M	-33.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
152.91M	97.56M	129.46M	57.58M	38.50M
	Total Assets
576.88M	576.11M	626.73M	601.59M	397.31M
	Total Debt
202.94M	242.30M	728.32M	560.97M	329.48M
	Net Debt
50.04M	144.75M	635.44M	506.96M	290.98M
	Total Liabilities
304.76M	334.07M	813.91M	668.56M	407.97M
	Stockholders Equity
270.09M	239.81M	-187.18M	-66.97M	-10.66M
Cash Flow		Free Cash Flow
81.07M	3.40M	-72.36M	-114.61M	-66.95M
	Operating Cash Flow
114.05M	63.90M	-4.92M	-4.39M	15.72M
	Investing Cash Flow
-13.55M	-36.71M	-87.66M	-92.28M	-145.93M
	Financing Cash Flow
-43.79M	-25.74M	118.97M	117.60M	149.30M

SUPER HI INTERNATIONAL HOLDING LTD. Sponsored ADR Technical Analysis

Technical Analysis Sentiment

Positive

Last Price21.06

Price Trends

50DMA

23.02

Negative

100DMA

24.22

Negative

200DMA

20.21

Positive

Market Momentum

MACD

-0.34

Negative

RSI

49.04

Neutral

STOCH

71.45

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HDL, the sentiment is Positive. The current price of 21.06 is above the 20-day moving average (MA) of 20.64, below the 50-day MA of 23.02, and above the 200-day MA of 20.21, indicating a neutral trend. The MACD of -0.34 indicates Negative momentum. The RSI at 49.04 is Neutral, neither overbought nor oversold. The STOCH value of 71.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HDL.

SUPER HI INTERNATIONAL HOLDING LTD. Sponsored ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PTLO	74 Outperform	$779.98M	22.83	8.16%	―	4.51%	43.99%
CAKE	73 Outperform	$2.28B	14.39	41.18%	2.15%	4.42%	48.23%
FWRG	67 Neutral	$1.13B	61.29	3.27%	―	13.95%	-26.46%
HDL	59 Neutral	$1.40B	62.16	9.35%	―	―	―
Sector *	55 Neutral	$4.35B	2.82	-14.64%	5.20%	19.56%	-63.38%
GENK	47 Neutral	$153.67M	33.26	5.12%	―	15.12%	-46.08%
SG	46 Neutral	$2.45B	―	-19.46%	―	15.89%	22.07%

* General Sector Average

Performance Comparison

HDL

SUPER HI INTERNATIONAL HOLDING LTD. Sponsored ADR

21.06

0.14

0.67%

CAKE

Cheesecake Factory

50.31

16.55

49.02%

FWRG

First Watch Restaurant Group

18.59

-6.54

-26.02%

PTLO

Portillo's

10.45

-1.67

-13.78%

Sweetgreen

20.84

-1.90

-8.36%

GENK

GEN Restaurant Group, Inc. Class A

4.62

-5.81

-55.70%

SUPER HI INTERNATIONAL HOLDING LTD. Sponsored ADR Earnings Call Summary

Earnings Call Date:Mar 25, 2025

(Q3-2024)

% Change Since: -18.37%|

Next Earnings Date:Jun 24, 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.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.