Positive profit alert, in line
Haidilao (6862.HK) Positive profit alert, in line
- Positive profit alert with FY23 net earnings surging 168% y-o-y, in line with expectations
- Latest operational data of Lunar New Year (Feb 9-17th) reflects table turnover reaching pre-COVID level of above 5x, with Valentines’ Day reaching above 6x
- Our last rating stood a BUY, with TP at HK$27.9
Haidilao (6862.HK) released a positive profit alert, in-line with market expectations. FY23 net earnings rose 168% yoy to Rmb4.4bn on China’s reopening (FY22: Rmb1.64bn), thanks to a recovery in table turnover, and operational efficiency. FY23 revenue rose 33.3% y-o-y to Rmb31.0bn, on the recovery in customer flow. Compared with 1H23, 2H23 core net earnings rose 10% yoy. In FY23, the Company had opened 9 stores, and reopened 30 stores that were temporarily closed during the pandemic.
During latest Lunar New Year, the Company had recorded table turnover reaching above 5x (Feb 9th -17th), tracking in-line with pre-COVID periods. This, compared with 2023, reflects a 40% yoy increase. In fact, during Valentine’s Day, HDL had recorded table turnover rising above 6x. Overall, the Company is tracking ahead of hotpot peers in terms of its recovery in table turnover. Our last rating stood a BUY, TP at HK$27.9.