After reviewing the first-half data of $HAIDILAO(06862.HK), I found that despite the overall downturn in the catering industry, Haidilao performed relatively well.

Compared to last year's full-year table turnover rate, the first half of this year achieved 4.2, surpassing the overall figure from last year. The total number of stores continues to decline slightly, which I attribute to the continuous implementation of the Woodpecker and Hard Bone plans, focusing more on improving store operational quality.

Moreover, cost control on raw materials in the first half was well managed, with a significant improvement in gross margin. Due to enhanced store operational efficiency, amortization and depreciation expenses also improved.

However, the profit margin did not show a significant increase because of the relatively high growth in labor costs—both the density of service staff and their salaries have risen.

Overall, companies that can achieve growth and maintain momentum in such an environment are commendable. The rise in labor costs in this context is more of a proactive choice by the company rather than a point for criticism.

Additionally, the mid-year dividend payout, against the backdrop of continuously declining stock prices (2024 PE barely over 10x), offers a yield of 5-6%, which is quite attractive.

In tough times, perhaps only the fittest survive, and true gold is forged in fire?