Business Overview / Sources of Revenue

Super Hi International Holding Ltd. (ticker: HDL) operates as an investment holding company primarily engaged in running Haidilao-branded hot pot restaurants internationally, including in Asia, North America, Europe, and Oceania[3][4][5]. The company’s revenue streams include:

- Operating self-owned Haidilao restaurants
- Providing food delivery services
- Selling hot pot condiment products and branded food items to guests and retailers[3][4]

Restaurant operations are the company’s core revenue source, contributing the significant majority of overall earnings, while delivery and product sales represent additional, but smaller, segments[3][4]. For the trailing twelve months ending early 2025, Super Hi International reported revenue of approximately US$790 million[4][5]. While a precise percentage breakdown is not disclosed in the available information, the vast majority of revenue is driven by dine-in restaurant operations, with delivery and retail product sales comprising the remainder[3][4].

Revenue Growth Potential and Recurrence

Super Hi International (HDL) generates most of its revenue from restaurant operations, with little evidence of a large recurring revenue component such as subscriptions or ongoing service contracts; its income primarily depends on guest visits and restaurant activity[3][5]. Revenue grew 14.6% year-over-year to $198.6 million, driven by increased guest visits, higher table turnover, and international expansion[4][5]. Over the next 5+ years, revenue growth potential appears robust, supported by new restaurant openings and rising international demand. With recent annual growth rates in the low-to-mid teens (12.5–14.6%), sustained double-digit growth is plausible if expansion and operational improvements continue[4][5]. However, growth will likely moderate as the company matures and market saturation increases.

Economic Moat Factors

Super Hi International (HDL), as the operator of Haidilao restaurants and related food businesses, possesses a moderate economic moat primarily due to its brand power and potential economies of scale[1][4][5]. The Haidilao brand is well-known for quality hot pot dining and distinctive customer service, which drives customer loyalty and supports premium pricing[1][5]. This brand recognition represents a meaningful barrier for new entrants.

However, switching costs for restaurant customers are generally low, and network effects are minimal since dining decisions are not fundamentally dependent on the number of users or participants[1]. While large scale allows some purchasing and operational efficiencies, the restaurant industry remains highly competitive, with limited unique assets or proprietary technology that could further reinforce HDL’s moat[4][5].

In summary, HDL’s moat is anchored by strong branding and operational scale, but is constrained by low switching costs and the competitive nature of the restaurant industry[1][4][5].

Leadership

Super Hi International (HDL) appointed Ms. Yang Lijuan as CEO and executive director effective July 1, 2024. She is not a founder and succeeded Mr. Li Yu, the previous CEO, who remains as executive director and senior regional manager[2][3][4]. Ms. Yang brings experience from Haidilao International but no information confirming her ownership stake is publicly available in the sources provided. Other key executives include Liu Li (executive director) and Cong Qu (CFO and company secretary)[5]. The Chairlady is Ms. Shu Ping, a prominent figure in the company’s strategic direction[4].

Financial Health

Super Hi International (HDL) reported Q1 2025 revenue of $197.8 million, up 5.4% year-over-year[1]. However, the search results do not provide specific figures on its cash to debt ratio or free cash flow. There is also no direct information available about free cash flow margin or share buyback/dilution activity in the cited sources. For an accurate assessment of balance sheet health, free cash flow, and share dilution, refer to their most recent Form 20-F and financial statements on the company’s investor relations website[4].

Last updated Jun 12, 2025