Haidilao International Holding (6862) AI Stock Analysis

• Market Cap: $84.17B
• Dividend Yield: 10.6%
• Average Volume (3M): 16.14M
• Price to Earnings (P/E): 16.0
• Beta (1Y): 1.22
• Revenue Growth: 1.35%
• EPS Growth: 4.06%
• Country: HK
• Employees: 137,178
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Restaurants
• EPS (TTM): 0.54
• Shares Outstanding: 5,574,000,000
• 10 Day Avg. Volume: 12,904,274
• 30 Day Avg. Volume: 16,137,945
• PEG Ratio: -0.59
• Price to Book (P/B): 14.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 20.19
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $19.62
• Price Target Upside: 32.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: HK$16.50 ▲(11.79%Upside)

Haidilao International Holding shows strong financial performance and a robust valuation with a high dividend yield. However, technical analysis suggests bearish momentum, which moderately impacts the overall score. The absence of earnings call insights and corporate events data leaves some uncertainty in future outlook assessment.

Positive Factors

Margin Expansion

Potential store expansion acceleration and margin expansion are expected to drive a mild turnaround.

Operational Efficiency

Store efficiencies are expected to see meaningful improvement through streamlining underperforming stores and improving supply chain management.

Profitability Initiatives

Haidilao aims to improve profitability and operational efficiency by enhancing product offerings and exploring franchising models.

Negative Factors

Earnings Projection

Analysts cut earnings by 8% for FY24E/FY25E due to lower store numbers and higher staff cost assumptions.

Market Competition

Intense competition in the catering market led to a lowered target price pegged to a reduced PE ratio.

Table Turnover

The table turnover rate of Haidilao restaurants recorded a yoy decline, leading to a yoy drop in revenue.

Haidilao International Holding Business Overview & Revenue Model

Company Description

Haidilao International Holding Ltd., an investment holding company, engages in the restaurant chain operation and delivery businesses. It operates a Haidilao branded Chinese cuisine restaurant that focuses on hot pot cuisine. The company is also involved in the sale of condiment products and food ingredients; logistics and wholesale trade activities; management consultation; financial management; provision of food research, development, and technology services; and trading businesses. As of December 31, 2021, it owned and operated 1,443 restaurants, which included 1,329 restaurants in Mainland China, as well as 114 restaurants in Hong Kong, Macao, Taiwan, Singapore, Vietnam, Malaysia, Indonesia, South Korea, Japan, the United Kingdom, the United States, Canada, and Australia. The company was incorporated in 2015 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Haidilao primarily generates revenue through its extensive chain of hotpot restaurants, which attract a large customer base due to their customizable dining experience and exceptional service. The company capitalizes on its well-known brand and the growing popularity of hotpot cuisine both in China and abroad. In addition to restaurant sales, Haidilao benefits from ancillary sales, such as branded condiments and food products available for purchase in their restaurants and online. Strategic location selection, efficient supply chain management, and a strong focus on customer service contribute significantly to its earnings. The company may also engage in partnerships and collaborations to enhance its brand presence and diversify its revenue streams.

Haidilao International Holding Financial Statement Overview

Summary

Haidilao International Holding shows strong financial performance with significant revenue growth and improved profitability margins. The balance sheet is solid with moderate leverage and a high ROE. However, cash flow analysis is limited due to missing data, presenting challenges in liquidity assessment.

Income Statement

Haidilao International Holding exhibited strong revenue growth with a 3.14% increase from 2023 to 2024. The gross profit margin improved to 24.65%, and the net profit margin increased to 11.01%, highlighting enhanced profitability. EBIT and EBITDA margins also showed significant strength at 24.05% and 19.34%, respectively, reflecting efficient operational management.

Balance Sheet

The company maintains a solid equity position with a debt-to-equity ratio of 0.59, indicating moderate leverage. The return on equity (ROE) improved to 45.11%, suggesting efficient use of shareholders' funds to generate profits. The equity ratio stands at 45.81%, reflecting a healthy balance between equity and total assets.

Cash Flow

Cash flow metrics are mixed. The operating cash flow to net income ratio is unavailable for 2024, but free cash flow growth showed strength with a 54.76% increase in 2023. The free cash flow to net income ratio is not calculable for 2024, indicating potential challenges in liquidity analysis.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	42.75B	41.45B	31.04B	41.11B	28.61B
Gross Profit	12.11B	9.44B	7.89B	8.26B	6.68B
EBITDA	8.27B	9.13B	6.40B	2.06B	4.21B
Net Income	4.71B	4.50B	1.37B	-4.16B	309.27M
Balance Sheet
Total Assets	22.78B	24.68B	21.44B	28.02B	27.53B
Cash, Cash Equivalents and Short-Term Investments	9.58B	11.36B	7.04B	6.50B	2.95B
Total Debt	6.17B	7.30B	9.88B	14.93B	12.16B
Total Liabilities	12.36B	13.16B	13.98B	20.09B	17.29B
Stockholders Equity	10.43B	11.53B	7.44B	7.91B	10.23B
Cash Flow
Free Cash Flow	6.33B	8.37B	5.30B	-663.18M	-3.16B
Operating Cash Flow	7.63B	9.00B	6.15B	3.81B	2.92B
Investing Cash Flow	-91.49M	-5.31B	-756.89M	-4.95B	-4.69B
Financing Cash Flow	-7.63B	-3.50B	-4.99B	4.31B	2.34B

Haidilao International Holding Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.76
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:6862, the sentiment is Negative. The current price of 14.76 is below the 20-day moving average (MA) of 15.03, below the 50-day MA of 15.64, and below the 200-day MA of 15.48, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 42.61 is Neutral, neither overbought nor oversold. The STOCH value of 64.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:6862.

Haidilao International Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2217	74 Outperform	HK$2.11B	26.39	5.40%	3.44%	1.63%	-47.80%
6862	71 Outperform	$84.17B	16.02	42.85%	10.60%	1.35%	4.06%
0341	69 Neutral	HK$4.01B	17.25	8.26%	8.58%	2.29%	35.94%
9658	67 Neutral	HK$10.12B	33.83	11.98%	―	―	―
Sector *	64 Neutral	kr11.51B	16.29	10.84%	9.93%	2.66%	5.01%
9922	63 Neutral	HK$3.87B	65.02	1.72%	0.72%	-0.41%	-87.88%
2150	51 Neutral	HK$2.58B	―	-20.95%	―	-6.61%	-5748.54%

Haidilao International Holding Corporate Events

Haidilao International Announces Board Composition and Roles

Haidilao International Holding Ltd. has announced the composition of its board of directors and the roles each member will play within the company’s governance structure. The announcement outlines the members of the board, including both executive and independent non-executive directors, and details their participation in various board committees. This update is significant for stakeholders as it clarifies the leadership and governance framework of the company, potentially impacting its strategic direction and operational oversight.

The most recent analyst rating on (HK:6862) stock is a Buy with a HK$15.20 price target. To see the full list of analyst forecasts on Haidilao International Holding stock, see the HK:6862 Stock Forecast page.

Haidilao Establishes Nomination Committee to Strengthen Board Governance

Haidilao International Holding Ltd. has established a Nomination Committee to ensure a fair and transparent process for appointing and re-appointing directors to its Board. The committee, comprising a majority of independent non-executive directors, aims to maintain a balance of skills, knowledge, experience, and diversity on the Board, aligning with the company’s business needs. This move is likely to enhance corporate governance and stakeholder confidence.

The most recent analyst rating on (HK:6862) stock is a Buy with a HK$15.20 price target. To see the full list of analyst forecasts on Haidilao International Holding stock, see the HK:6862 Stock Forecast page.

Haidilao Announces Successful AGM Resolutions and Strategic Mandates

Haidilao International Holding Ltd. announced the successful passing of all resolutions at its Annual General Meeting held on May 19, 2025. Key resolutions included the adoption of the company’s financial statements, the declaration of a final dividend, the re-election of several directors, and the reappointment of Deloitte Touche Tohmatsu as the auditor. Additionally, the company authorized mandates for share allotment and repurchase, reflecting a strategic focus on shareholder value and corporate governance.

The most recent analyst rating on (HK:6862) stock is a Hold with a HK$14.20 price target. To see the full list of analyst forecasts on Haidilao International Holding stock, see the HK:6862 Stock Forecast page.

Haidilao Announces 2025 Annual General Meeting Agenda

Haidilao International Holding Ltd. has announced its upcoming annual general meeting scheduled for May 19, 2025. Key agenda items include the approval of the audited financial statements for 2024, the declaration of a final dividend, re-election of directors, and the re-appointment of Deloitte Touche Tohmatsu as the company’s auditor. The meeting will also consider resolutions to authorize the board to allot and issue additional shares, which could impact the company’s market positioning and shareholder value.