Hong Kong Stock Movement | Haidilao (06862) Rises Over 3% Before Noon as Citi Views Founder Zhang Yong's Return as CEO Positively

Stock News
01/29

Haidilao (06862) rose more than 3% before noon. As of the time of writing, the stock was up 3.22% to HK$16.02, with a turnover of HK$204 million. On the news front, on January 13, Haidilao announced that founder Zhang Yong succeeded Gou Yiqun as the company's CEO, effective immediately. Citi holds a positive view on Zhang Yong's return, as founders often focus more on revenue-driven profit growth and possess strong execution capabilities and breakthrough innovation abilities. The bank believes that, supported by a stabilizing table turnover rate in the second half of last year, improved efficiency from renovated stores, and sales contributions from new businesses, Haidilao's revenue growth is expected to reaccelerate. Tianfeng Securities stated that it is optimistic about the company's stabilizing and improving operational trend. Under the leadership of the founder and the new board team, the hot pot business is developing steadily, and the "Pomegranate Plan" is building a new growth curve. The brokerage pointed out that Haidilao's hot pot business is relatively high-priced and has a high proportion of directly operated stores; improvements in operational data, coupled with potential policy stimulus, could catalyze significant earnings elasticity.

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