Super Hi International Holding Ltd. (HDL) Q1 2026 Earnings Call Transcript
Super Hi International Holding Ltd. (HDL) Q4 2025 Earnings Call Transcript
Super Hi International Holding Ltd. ( HDL ) Q3 2025 Earnings Call November 26, 2025 7:00 AM EST Company Participants Lijuan Yang - CEO & Executive Director Cong Qu - Compliance Officer, CFO & Company Secretary Conference Call Participants Jun Zeng - Huatai Securities Co., Ltd.
Super Hi International's Q1 FY25 showed a marked slowdown: Revenue up 5.4%, same-store sales nearly flat, and only one new restaurant opened. Margins compressed due to rising food and labor costs, with EBIT margin dropping to 4.96% and free cash flow turning negative, though cash reserves remain strong. Valuation multiples remain stretched versus industry peers, with limited upside to my $22 price target and no dividend or buyback support.
Super Hi International's stock remains resilient despite recessionary pressures, with strong support around $22, driven by limited float and major shareholder commitment. Q4 FY 2024 saw 10.4% sales growth, but a slight sequential slowdown; EBIT increased 44.6% year-over-year despite FX headwinds. The company's diversified portfolio and minimal exposure to North America shield it from broader market downturns, maintaining strong cash flow and zero long-term debt.
I am downgrading Super Hi's rating to a Hold after reviewing its latest earnings and new growth plans. HDL's FY 2024 headline numbers missed expectations, as it added a modest single-digit number of net new stores last year. But Super Hi's longer-term future is bright with its multi-brand strategy; it is worth paying attention to the new higher-margin BBQ restaurant operations.
Super Hi International Holding Ltd. Unsponsored ADR (HDL) has been upgraded to a Zacks Rank #2 (Buy), reflecting growing optimism about the company's earnings prospects.