[ET Net News Agency, 22 August 2019] Goldman Sachs lifted its target price for Haidilao
International Holding (06862) to HK$38 from HK$36 and maintained its "buy" rating.
The research house hosted Haidilao's post result NDR in HK yesterday. Management still
doesn't see cannibilization, even with such aggressive store openings. It noted that store
openings in Beijing and Xian have been aggressive while table turns remain solid at 5.2x
and 5.6x, respectively in 1H.
Goldman believes market share penetration potential remains solid, driving strong growth
in the mid-term with an execution track record supporting fast, store expansion progress.
Goldman cut its 2019-21 net income forecast by 6-7%, mainly factoring in the IFRS impact
and higher staff costs, partially offset by other cost-saving. (KL)