Founder Securities has issued a research report stating that Super Hi International (09658) is a leading brand in the overseas expansion of Chinese cuisine. The company adheres to a strategy of standardization and localization, continuously optimizes its single-store model, and the firm is optimistic about the vast market space for Chinese cuisine going global. The securities house forecasts the company's net profit attributable to shareholders for 2026-2028 to be $40 million, $50 million, and $60 million, respectively, and maintains a "Recommended" rating.
The main points from Founder Securities are as follows:
Event: The company released its Q1 2026 financial report. In Q1 2026, revenue reached $226 million, a year-on-year increase of 14%. Operating profit was $14 million, up 71% year-on-year, corresponding to an operating profit margin of 6.2%, an increase of 2.1 percentage points from the previous year. This was primarily due to positive operating leverage from increased revenue and overall table turnover rate, as well as improved operational efficiency from ongoing optimization of various operating costs. Net profit attributable to shareholders was $4.09 million, a year-on-year decrease of 66%. The significant discrepancy between the growth rates of net profit attributable to shareholders and operating profit is mainly attributed to foreign exchange gains and losses. Due to the depreciation of local currencies against the US dollar, net foreign exchange losses in Q1 2026 increased by $11.7 million compared to Q1 2025.
Segment Analysis: Delivery Business Shows Significant Growth 1) Super Hi Restaurants: Revenue in Q1 2026 was $204 million, an 8% year-on-year increase, primarily driven by improved table turnover, increased customer traffic, and network expansion. 2) Delivery Business: Revenue in Q1 2026 reached $7.3 million, surging 82.5% year-on-year. This growth is mainly due to the company's continuous optimization of delivery products and services, along with strategic marketing collaborations with local food delivery platforms. 3) Other Businesses: Revenue from other businesses in Q1 2026 was $14 million, a substantial 167% year-on-year increase. This growth stems from the rising popularity of hotpot condiments, the Super Hi brand, and its sub-brand food products among local customers and retailers, as well as the incubation of secondary brand restaurants under the "Pomegranate Plan" through diversified business concepts.
Volume & Price: Table Turnover Improves in East Asia/Southeast Asia, Average Spend Per Customer Rises 1) Volume: The company's overall average table turnover rate in Q1 2026 was 4.0 times per day, a year-on-year increase of 0.1 times. Specifically, Southeast Asia / East Asia / North America had rates of 3.8 / 5.1 / 3.6 times per day, representing changes of +0.1 / +0.1 / -0.4 times year-on-year, respectively. 2) Price: The average spend per customer in Q1 2026 was $25.3, an increase of $1.1 year-on-year. By region, the average spend in Southeast Asia / East Asia / North America was $19.6 / $28.2 / $41.4, with changes of +$0.9 / flat / +$1.8 year-on-year, respectively.
Store Network: One New Store Opened in Southeast Asia in Q1 2026 As of the end of March 2026, the company operated a total of 127 Super Hi restaurants, with a net increase of one store in Q1 2026, located in Southeast Asia. As of March 31, 2026, the number of stores in Southeast Asia / East Asia / North America was 72, 21, and 22, respectively.
Cost Structure: Proportions of Raw Materials and Labor Costs Decrease Year-on-Year 1) Raw Material Costs: Accounted for 33.9% in Q1 2026, down 0.1 percentage points year-on-year. 2) Employee Costs: Accounted for 34% in Q1 2026, a decrease of 1.3 percentage points year-on-year.
Risk Warnings: Risks include slower-than-expected store expansion, intensifying industry competition, and food safety risks.
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