[ET Net News Agency, 14 July 2020] UOB Kay Hian lifted its target price for Haidilao
International (06862) to HK$38.9 from HK$25 and upgraded its rating to "buy".
Haidilao announced a 20% decrease in revenue and a net loss in 1H. However, the research
house noted that its recovery is ongoing as >95% of its restaurants have started
operations and its table turnover rate has reached >3x so far.
UOBKH believes its robust supply chain, mentor-mentee mechanism and leadership programme
offer huge potential for further expansion. The company remains aggressive with its new
store openings, indicating management's confidence over its business outlook. (KL)