Shares of Super Hi International Holding Ltd (ASX: 09658) surged nearly 30% during the trading session. At the time of writing, the stock was up 14.55% to HK$11.60, with a turnover of HK$53.36 million.
The company recently released its first-quarter results, reporting revenue of $226 million, a year-on-year increase of 14.2%. However, profit for the period was $4.053 million, representing a decline of 65.88% compared to the same period last year. Operating profit reached $14 million, marking a 70.7% increase year-on-year.
Qu Cong, the company's CFO and Board Secretary, stated that after excluding the non-operational factor of foreign exchange fluctuations, the actual business profitability for the first quarter achieved growth.
An analysis points out that Super Hi International underwent a deep strategic adjustment in 2025 with the aim of "benefiting customers and benefiting employees." This led to pressure on average customer spending, a year-on-year increase in the expense ratio, and a significant year-on-year decline in the operating profit margin for 2025.
After a year of adjustment, the company not only saw a year-on-year increase in table turnover rate in the first quarter of 2026, but its operating profit margin also showed a significant year-on-year recovery, aided by operating leverage. This indicates that the company has largely emerged from its adjustment period in Q1 2026 and has begun to release performance.
The company's valuation has retreated to relatively low levels over the past 12 months, making its value proposition prominent once again. Market attention is expected to gradually recover.
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