Nomura: Maintains Buy rating on HAIDILAO (06862) with target price raised to HK$16.3

Nomura released a research report stating that it has raised the target price of HAIDILAO (06862) by 7.9%, from 15.1 Hong Kong dollars to 16.3 Hong Kong dollars, while maintaining a "buy" rating. The report mentions that in the second half of HAIDILAO's 2024 fiscal year, same store sales will have better profit margins under cost trends. It is expected that the net profit of HAIDILAO in the second half of the 2024 fiscal year will increase steadily by 13% year-on-year. Revenue in the second half is expected to increase by 2% year-on-year, benefiting from the low double-digit growth in same store sales. On the positive side, Nomura expects HAIDILAO's average selling price (ASP) to improve by 1 percentage point year-on-year. At the same time, HAIDILAO is accelerating the opening of new stores, with 50 new stores expected to open in the second half of 2024. Nomura predicts that due to favorable costs and better operational efficiency, HAIDILAO's operating profit margin will improve year-on-year and on a half-year basis.