Shares of Super Hi International Holding Ltd (09658) rose more than 4% in morning trading. As of writing, the stock is up 4.28%, currently trading at HK$10.73, with a turnover of HK$2.7602 million.

Super Hi International recently released its first-quarter results, showing revenue of $226 million, a year-on-year increase of 14.2%. Profit for the period was $4.053 million, down 65.88% year-on-year. Operating profit was $14 million, up 70.7% year-on-year. Qu Cong, the company's Chief Financial Officer and Board Secretary, stated that after excluding the non-operational factor of exchange rate fluctuations, the company's actual business profitability achieved growth in the first quarter.

Analyst Commentary and Rating

A research report from Puyin International noted that Super Hi International (09658) underwent a deep strategic adjustment in 2025 with the aim of "benefiting customers and employees," which put pressure on average customer spending for 2025, led to a year-on-year increase in the expense ratio, and caused a significant year-on-year decline in operating profit margin. After a year of adjustment, the company's first-quarter 2026 results not only showed a year-on-year increase in table turnover rate, but the operating profit margin also rebounded significantly year-on-year with the help of operating leverage. This indicates the company has largely emerged from its adjustment period in the first quarter of 2026 and has begun to release performance. The company's valuation has corrected to a relatively low level over the past 12 months (less than 6.0x 2026 EV/EBITDA), making its value proposition prominent again, and market attention is expected to gradually recover. The firm upgraded Super Hi International to a "Buy" rating, with a new target price of HK$13.7 for its Hong Kong shares and $17.5 for its US-listed shares (based on 7.0x 2026 EV/EBITDA).