[ET Net News Agency, 9 October 2019] Morgan Stanley upped its target price for Haidilao
International (06862) to HK$35 from HK$32 and maintained its "equal-weight" rating.
The research house expects strong sales momentum to continue in 2H. Its channel check
indicated price hikes in tier 1 cities in 3Q while table turnover remained healthy.
Morgan tweaked its unit assumption to 766 for 2019 (with 300 net openings) from 784
previously. It expects stores to reach 665 by 3Q. Store opening pace slightly slowed down
in August due to the change in fire protection regulation and license approval procedure
but picked up in September.
Morgan expects price adjustment to roll out nationwide in September and 4Q to offset raw
material pressure. It thinks ASP growth will help SSSG in 2H. (KL)