Guoyuan International released a research report highlighting HAIDILAO's (06862) growth strategies through store optimization, differentiated theme outlets, and its multi-brand incubation initiative "Pomegranate Plan." The firm believes these efforts will not only cultivate a second growth curve but also enhance operational synergies. A "Buy" rating was issued with a target price of HK$18.06. Key insights include:

**Differentiated Store Strategy Drives Upgrades** As of H1 2025, HAIDILAO operated 1,489 restaurants, comprising 1,322 self-owned, 41 franchised, and 126 under new brands. The company focuses on dynamic adjustments to elevate store formats, introducing nightlife, family-friendly, and pet-friendly themes to cater to diverse consumer demands.

**Pomegranate Plan Gains Traction with New Brands** The multi-brand strategy has seen successful launches including Flame Grill (烤肉铺子), Flame Official (火焰官), Hi Love Fried Chicken (小嗨爱炸), and Raise Hot Pot (举高高小火锅), spanning full-service to quick-service segments. Flame Grill, a flagship concept blending barbecue, hair-washing services, and nightlife, has expanded to over 70 locations, demonstrating cross-segment appeal.

**Investment Rationale** HAIDILAO’s dual approach—upgrading core stores while incubating niche brands—positions it for sustained growth. With a projected 2025-2027 net profit of RMB4.43/4.86/5.34 billion and a 6% dividend yield, the target price implies a 23.7% upside at 20x 2025E P/E.