Half-year performance hits a new high: Has Haidilao turned the corner?

Offline catering has finally welcomed back long-lost customer flow, but people's consumer confidence has not fully recovered.

On August 29th, Dolphin Research (6862.HK) released its performance for the first half of 2023. During the reporting period, Dolphin Research achieved a revenue of 18.89 billion yuan, a year-on-year increase of 24.6%; recorded a net profit of 2.26 billion yuan, setting a new half-year profit record since its listing, turning losses into gains compared to the same period last year.

In terms of key indicators such as table turnover rate, Dolphin Research increased to 3.3 times/day in the first half of the year, with a same-store table turnover rate of 3.5 times/day, lower than the 4.8 times/day in 2019 before the epidemic. Previously, Dolphin Research had stated that it would not open stores on a large scale if the table turnover rate did not reach 4 times/day. However, at this year's shareholders' meeting, Dolphin Research reiterated its "cautiously optimistic" attitude towards future store openings, but also stated that "4 is not an absolute number."

During the reporting period, Dolphin Research opened 5 new restaurants, resumed operations of 24 restaurants, and closed 18 restaurants, bringing the total number of restaurants to 1,382.

Customer traffic is the key to the recovery of offline catering. According to data provided by Dolphin Research, during the three-day Dragon Boat Festival holiday, some Dolphin Research stores in Hangzhou, Xiamen, Changsha, and other places had a daily table turnover rate of more than 9 times. In order to attract customer flow, Dolphin Research even had some stores spontaneously provide "shuttle buses for concert audiences after the show."

People have returned, but consumer confidence has not fully recovered.

In the first half of this year, Dolphin Research's average customer spending decreased from 105 yuan to 102.9 yuan, while in the same period last year, Dolphin Research's per capita customer spending reached 112.8 yuan.

Insiders from Dolphin Research told TradeWind01 that this change is partly due to marketing discount activities, and on the other hand, consumers pay more attention to "value for money."

A research report from Everbright Securities attributed the decrease in average customer spending to the slowdown in CPI growth, fewer single-table guests and inclusion of takeout in the same period last year, higher per capita customer spending base, and increased promotional activities.

In fact, it is not only Dolphin Research that has seen a decline in average customer spending. Xiabuxiabu (0520.HK) decreased from 63.1 yuan to 58.2 yuan; Tai'er, a subsidiary of Jiulongjiu (9922.HK), decreased from 78 yuan to 72 yuan, and Song Hotpot decreased from 130 yuan to 121 yuan.

In order to compete for limited consumer purchasing power, Dolphin Research has been taking continuous actions this year.

TradeWind01 learned from insiders at Dolphin Research that the company underwent organizational restructuring in the first half of this year. The existing Dolphin Research stores are managed according to regional divisions, with 19 regional "coaches" responsible for management. These coaches have the authority to innovate products and carry out marketing activities based on the actual market conditions in their respective regions. After approval by the headquarters, the products are uniformly purchased.

The above-mentioned insiders stated that Dolphin Research will maintain a pace of launching new products 2-3 times a year nationwide. As of the first half of this year, Dolphin Research has launched 9 new spring and summer products nationwide and 143 featured products in the regions.