China's Subdued Consumer Demand Could Weigh on Haidilao

Dow Jones
09/11

0240 GMT - China's subdued consumer demand could affect market sentiment on Haidilao International, Daiwa analysts write in a note. The company's August table returns may improve sequentially but remain flat on-year, they reckon, noting that fourth-quarter demand remains uncertain. Haidilao is developing new brands under its "Pomegranate Plan," with food-stall hotpot and sushi formats set for wider replication, they note. Expectations for these businesses remain modest given their limited scale and Haidilao's unproven ability to replicate non-Haidilao brands. The brokerage maintains its outperform rating for the stock but cuts target price to 11.30 Hong Kong dollars, citing weaker demand among other factors. Shares last at HK$10.04.

 

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