China's hotpot chain Haidilao falls on brokers' downgrade

Haidilao International Holding

09/11/2021 07:12

** Shares of China's hotpot chain Haidilao International
Holding Ltd  6862.HK  fall 4.3% to HK$21.10, their biggest
intraday pct decline since Nov 1 
    ** Stock on course to snap two sessions of gains
    ** Stock is the biggest percentage decliner in benchmark
Hang Seng Index  .HSI , Hang Seng China Enterprises Index
 .HSCE  and Hang Seng Commerce & Industry Index  .HSNC  
    ** CMB International Capital downgrades the stock to "hold"
from "buy" and trims TP to HK$18.30 from HK$34.06, amid macro
headwinds in 4Q21E and 1Q22E and Haidilao's plan to suspend
stores and slow down expansion 
    ** Nomura downgrades Haidilao to "reduce" from "neutral" and
cuts TP to HK$17 from HK$31.6, saying meaningful near-term
recovery unlikely  
    ** The hotpot chain operator says it has decided to shut
down or suspend operations of about 300 Haidilao restaurants by
end of 2021 and will slow down its business expansion
plan urn:newsml:reuters.com:*:nFWN2RW20U
    ** Daiwa maintains "outperform" rating on the stock, saying
the closures are expected to improve its overall profitability
and cash flows as margin drag and underperforming stores will
have been removed but sees risk from slower-than-expected
recovery in dine-in footfall
    ** The Hang Seng Commerce & Industry Index  .HSNC  gains
0.8% while the Hang Seng China Enterprises Index  .HSCE  and
Hang Seng Index  .HSI  climb 0.1% each



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