Dongwu Securities: First award to Tehai International (09658) “increase in holdings” rating to continuously improve the layout of global stores

The Zhitong Finance App learned that Dongwu Securities released a research report saying that considering the strong Chinese and back-office capabilities of Haidilao, the Chinese restaurant market has great potential, covering Te Hai International (09658) for the first time, with an “additional” rating. The company's net profit to the mother is estimated to be 4945/5636/74.44 million US dollars in 2025-2027 (RMB 3.5/4.0/530 million yuan converted to USD: RMB 7.13). The 3-year compound growth rate is 50.6%, corresponding to the current 2025-2027 PE is 21/24/16X, respectively. As an overseas listing platform for Haidilao, it is continuously improving the global store layout and speeding up the distribution of Chinese food overseas. The number of overseas stores is expected to reach 129/140/149 in 2025-2027, respectively.

The main views of Dongwu Securities are as follows:

The company is Haidilao's overseas listing platform

Tehai International is a listed catering company under the Haidilao Group that focuses on overseas markets. It opened its first store in Singapore in 2012, leading the way for Chinese food overseas. In 2024, revenue of US$780 million was achieved, yoy +13.4%, achieving net profit of US$21.8 million; in 2025H1, net profit of US$28.35 million was achieved. At the end of 2024, there were 122 stores in operation, and 73/19/20/10 stores in Southeast Asia/East Asia/North America/other regions, respectively. The company adheres to the Haidilao brand positioning, and its direct management is expanding steadily. With Southeast Asia as the main market, the number of Southeast Asian stores will gradually cover the global market. In 2024, the number of Southeast Asian stores will account for 59.8%. The company uses “core dishes” + “localized products” to meet the diversified needs of overseas markets.

The right time for Chinese food to go out to sea

The growth rate of the same restaurant brand launched in 2024 was only positive for Haidilao, and going overseas became the second growth curve for leading companies. The overseas hot pot market has huge potential and is expected to reach 30 billion US dollars. More than 60 million overseas Chinese overseas Chinese support the industrialization of Chinese food brands, while local consumers will help the brand expand. The concentration of the overseas traditional Chinese restaurant industry is low, and the scale is not as large as Western-style Chinese food brands. As a highly standardized Chinese category, hot pot is expected to replicate the successful path of Westernized Chinese restaurant brands. Meanwhile, Tehai International is the largest Chinese restaurant brand originating in China. With the support of social media tools, it is expected to further penetrate overseas markets.

The number one hot pot brand, gradually breaking the circle overseas

1) Haidilao is the number one brand of hot pot, with brand power, a mature international operation system and supply chain system; 2) The store model is continuously optimized, and the average return cycle is continuously shortened, and the average return period for stores is reduced to 5.1 years by estimating that in 2024; 3) Localization and traffic go hand in hand, and the star leading effect of the brand drives the same store to rise; 4) It has a complete evaluation, promotion and remuneration system to ensure overall product and service quality.