China's Haidilao jumps most in nearly 4 months as co forecasts business improvement

Haidilao International Holding

15/08/2022 03:51

** Shares of Chinese hot pot chain operator Haidilao
International Holding  6862.HK  jump as much as 10.2% to
HK$17.66, their biggest intraday pct gain since April 27
    ** Stock hit the highest since July 8 and on course for a
third straight session of gains; Haidilao shares are the biggest
percentage gainers in Hang Seng Index  .HSI  
    ** The Beijing-based co expects H1 revenue to fall 17%
year-on-year with net loss amounting to as much as 297 mln yuan
($44 mln), as compared with 96.5 mln yuan profit in H1 2021,
amid one-off losses from closure and suspension of restaurants
and impact of the COVID-19 pandemic (https://bit.ly/3Pj2PsN)
    ** Co says operating performance of its restaurants in China
and other regions has improved on a month-on-month basis since
June as COVID restrictions ease, and it will adjust business
strategies to ensure healthy cash flow 
    ** Daiwa maintains "buy" rating on Haidilao, citing the
overall table turnover recorded a month-on-month increase in
mainland China in July, based on the brokerage's own checks, but
sees risk from slower-than-expected recovery in dine-in
footfalls
    ** Hang Seng consumer goods and services index  .HSCGSI 
slips 0.2%, while Hang Seng Composite Index  .HSCI  and Hang
Seng Index  .HSI  ease 0.7% each


     ($1 = 6.7503 Chinese yuan)

 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))