Haidilao's Delivery Profitability to Lag Behind Dine-In's in 2H

Dow Jones
昨天

0301 GMT - Haidilao International's delivery business is likely to maintain a high-double-digit percentage growth in 2H, but its profitability is expected to continue to be lower than the dining-in segment's, UOB Kay Hian analysts say in a note. While the hotpot restaurant chain's 1H delivery revenue more than doubled to 2.05 billion yuan, profitability dropped because of lower average selling prices for delivery orders. "Although labor costs are also lower, platform fees drag the operating profitability, making it weaker than that of the dine-in business," the analysts say. UOB KH cuts its target price for the stock to 16.70 Hong Kong dollars from HK$18.30, while maintaining a buy rating. Shares are 1.9% lower at HK$11.93.

 

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