Haidilao

海底捞

Haidilao Group is a Chinese hot pot restaurant chain and Chinese cuisine restaurant company.

Haidilao, founded in April, 2001 and headquartered in Jianyang, is a hot pot restaurant. Zhang Yong is the founder. Listed on the HKEX on September 26, 2018, the company's major shareholders include Jianyang Jingyuan Investment Co., Ltd. and Zhang Yong and Shi Yonghong. Rivals that have direct and indirect competition with Haidilao include Xibei, Jiumaojiu, McDonald's and KFC.

Haidilao Group is a Chinese hot pot restaurant chain and Chinese cuisine restaurant company.

Sector

Consumer Staples

Industry

Leisure & Lodging & Restaurants

Sub-industry

Restaurant

Founded date

Apr 16, 2001

HQ location

Sichuan, China

Legal name

Haidilao International Holding Ltd

Website

http://www.haidilao.com/

hdl@haidilao.com

Number of Employees

10001-50000

News EO

Jul 7, 2020

News EO

Jul 7, 2020

Haidilao: Revenue Down 20% under Pandemic

Haidilao (06862:HKEX) announced that revenue is expected to fall by approximately 20% YoY, with the loss already underway by June 30, 2020. The company claimed that, due to the outbreak of the coronavirus, it suspended stores in mainland China from January 26 to March 12, 2020, which negatively affected its revenue as the revenue generated from restaurants accounts for more than 98% of earnings. Though the epidemic in some cities was gradually alleviated, the restoration of dine-in eating did not go as expected. Costs were not reduced as the company continued to expand through opening new stores. Besides, the firm donated money to medical institutions to mitigate the epidemic, increasing costs. Facing a severe market environment, Haidilao has also adjusted its commercialization strategy to reduce the worsening impact of the epidemic, including promoting the food delivery business.

Analysis EO

May 18, 2020

Analysis EO

May 18, 2020

Hot Pot Chain Haidilao’s Takes First Steps into Fast Food

► Haidilao’s restaurant operation occupies 96.36% of total revenues. ► Hot pot is the largest sector in the catering industry, with 13.70% of the market. Hot pot leader Haidilao’s (6862:HKEX) actions have attracted analysts’ eyes since it emerged to speak for the restaurant industry in China. The uniform prices of dishes in Beijing stores increased by 6%, raising heated discussions among clients on April 7. Its noodle store Shi Ba Cuan (in Chinese) has been open for nearly half a year, providing good quality food at a lower price, with a rating of 4 out of 5 stars on Yelp-like platform Dianping. Shi Ba Cuan is Haidilao’s step into the fast-food area; besides the hot pot firm, another famous restaurant, Xibei, has also shown strong interests, acting four years earlier than Haidilao. Fast food has the features of high frequency and demand, a low barrier and is easy to copy and expand; it’s no wonder that these two leaders are both bullish on this field. A profitable secondary point Starting in 2019, Haidilao opened its stores speedily, and the total number of stores increased from 466 at the end of 2018 to 768 at the end of 2019, nearly doubling the amount. But at the same time, sales and table turnover rate (table reuse rate, calculating formula: the number of times the table is the used – total number of tables/total number of tables × 100%) declined for the first time. According to the 2019 annual report, the growth rate of same-store sales revenue in first-tier cities for Haidilao decreased from 11.70% in 2018 to 3.30% in 2019. The table turnover rate of newly opened restaurants has dropped significantly, from 4.6 in 2017 to the current 3.9 while the highest record is 5. The industry average table turnover rate in 2019 is (in Chinese) at about 3.5. Taking a look at its revenue source, in 2019, 96.30% total revenue from Haidilao stores, showing an absolute reliance on hot pot stores. Consequently, when this part indicates slower growth, Haidilao needs to find another way to stimulate its business. According to the 2019 China Fast Food Industry Report (in Chinese), the number of fast-food stores in the catering industry has reached 49.20%. The chain rate of Chinese fast food stores is 55.10%, and that of Western fast food is 78%. Compared to Western fast food, the Chinese variety has the feature of needing more cooking steps and many more ingredients, making large-scale replication more difficult. Although some good players exist, they mostly focus on one or two specific dishes such as chicken and Lanzhou noodles, which somehow avoid the potential problems mentioned above. For Shi Ba Cuan, it covers more plates than the traditional players, including noodles, milk tea, breakfast and desserts. If Haidilao wants to copy this new program, the firm needs higher-level process management and a different food supply chain. Compared to the hot pot supply chain, the cooking steps are greater, and seasonings and ingredients are different from those of hot pot. In this period, attracting clients with high-quality service at lower prices is a good idea, while problems remain for famous restaurants. Since the supply chain is an advantage of Haidilao, whether and how the firm will take action on it requires further digging. Supply chain moat A reliable supply chain promises good food taste and fast expansion. The most famous one is Shuhai, which also supports Shi Ba Cuan. Besides supporting Haidilao and its brands, this firm also supports over 200 players in the restaurant industry, such as Xibei. These firms are mostly Haidilao’s former various departments, such as Shuhai, its old supply chain department. The upstream consists of three firms that provide multiple category foods and storage and transportation services. The middle stream focuses on seasoning, needed to attract discerning palates. The downstream consists of decoration, human resources, and a cloud service platform. Since food resources occupy the largest nearly 50% of the cost in the hot pot industry, a strong and stable upstream support become a moat of Haidilao, with almost 80% of total food are purchased through its supply chain network. Together with the well-known high-quality customer service and management system, promoting Haidilao to first place in the hot pot industry. Unlike other participants in the hot pot race, nearly 80% of them don’t have their supply chain system, relying on outside food, and most of them have less than five branches. Establishing a complete and high-efficiency chain is critical for players who wants to become a leader in this fiercely competitive place. Hot pot and fast food races The entire restaurant industry has been increasing during the past years, hitting revenue of USD 99 billion by 2020. The whole industry can be divided into dinner food and fast food, and hot pot acts as the largest sector in dinner food, with a 13.70% market share. Fast food occupies 25% of the total market share. Although Haidilao is the leader in the hot pot race, it only occupies 2.20% of the total, followed by second-place player Xiabu Xiabu, with 0.80%. The remaining 94.50% of the market is scattered in the hands of some regional brands, specialty hot pot brands and small independent brands. The market growth space for Haidilao still exists, but the remaining parts have their strengths and cater to consumers’ specific tastes. Meanwhile, fast food has a similar situation in the hot pot area – firms and brands are scattered. Haidilao may face the same problems in the hot pot business. Xibei has tried several years in this area but hasn’t reached real success yet. With the epidemic factor, Haidilao’s efforts in the fast-food area are waiting to be tested by the market.

Announcements

May 11, 2020 · HaiDiLao

Announcements

May 11, 2020 · HaiDiLao

COMPLETION OF PLACING OF EXISTING SHARES BY SHAREHOLDERS

Announcement: Click here

Announcements

May 11, 2020 · HaiDiLao

Announcements

May 11, 2020 · HaiDiLao

Zhou Zhaocheng has been appointed as joint company secretary

Announcement: Click here

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Announcements

May 7, 2020 · HaiDiLao

Announcements

May 7, 2020 · HaiDiLao

PLACING OF EXISTING SHARES BY SHAREHOLDERS

Announcement: Click here

News

Apr 28, 2020 · donews

News

Apr 28, 2020 · donews

Haidilao announces: full start of successor plan

Announcements

Apr 27, 2020 · HaiDiLao

Announcements

Apr 27, 2020 · HaiDiLao

Change of executive director, joint company secretary and authorized representative, resignation and appointment of chief financial officer

Announcement: Click here

News

Apr 24, 2020 · ifeng

News

Apr 24, 2020 · ifeng

Haidilao and Jiefurou join forces

Analysts

Yue Liu

Consumption

Linyan Feng

Automotive

Yuanpu Huang

Founder of EqualOcean

Announcements

Apr 23, 2020 · xueqiu

Announcements

Apr 23, 2020 · xueqiu

2019 annua report

Announcement: Click here

News

Apr 21, 2020 · linkshop

News

Apr 21, 2020 · linkshop

HaiDiLao enters the fast food industry

Announcements

Mar 25, 2020 · xueqiu

Announcements

Mar 25, 2020 · xueqiu

Unaudited Annual Results Announcement for the Year Ended December 31, 2019

Announcement: Click here

News

Mar 16, 2020 · Linkshop

News

Mar 16, 2020 · Linkshop

Haidilao has added some reopened stores in Shanghai, Shenzhen, Guangzhou and other places, reaching 332 nationwide

EO analysis

Meituan Creates Group Meal Department amid COVID-19

News

Mar 12, 2020 · 36Kr

News

Mar 12, 2020 · 36Kr

Closed for 45 days What "self-rescue" measures has Haidianlao adopted?

Analysis

Mar 11, 2020 · EO Company

Analysis

Mar 11, 2020 · EO Company

Hundreds of billions of catering empires, Haidilao's choice and beyond

News

Mar 10, 2020 · 36Kr

News

Mar 10, 2020 · 36Kr

ALL IN live broadcast, the ultimate weapon of Haidilao

News

Mar 5, 2020 · China Fund News

News

Mar 5, 2020 · China Fund News

Haidilao's "self-rescue" action! Start selling semi-cooked dishes online, market value soars 10 billion a day

News

Feb 20, 2020 · sina.finance

News

Feb 20, 2020 · sina.finance

CITIC Bank Beijing Branch and Baixin Bank grant credit to support Haidilao 2.1 billion

Research

Feb 11, 2020 · The above information is fromChina Securities, with source link: https://www.csc108.com. Please contact this company if full report is needed.

Research

Feb 11, 2020 · The above information is fromChina Securities, with source link: https://www.csc108.com. Please contact this company if full report is needed.

海底捞（6862.HK）：Detailed disassembly of Haidilao cash flow

Analysis

Feb 3, 2020 · Huxiu

Analysis

Feb 3, 2020 · Huxiu

Epidemic is on trend, the mysteries behind Haidilao‘s decisively "fired out"

Analysis

Jan 19, 2020 · 36Kr

Analysis

Jan 19, 2020 · 36Kr

2020, replicate Haidilao

Analysts

Yue Liu

Consumption

Linyan Feng

Automotive

Yuanpu Huang

Founder of EqualOcean

EO analysis

Meituan Creates Group Meal Department amid COVID-19