Citic CLSA: Confident in Haidilao (06862) to maintain a 95% dividend payout ratio, rated "outperforming the market"

Citi released a research report stating that they have given HAIDILAO (06862) an "outperform" rating. The bank believes that the company is prioritizing increasing table turnover rates and renovating existing HAIDILAO stores to incorporate local characteristics. This move is bold, as it goes against the conventional practice of chain restaurants pursuing standardization. However, the bank believes that HAIDILAO's supply chain capability is sufficient to make this change successful. The bank needs to see more progress to have confidence in non-HAIDILAO brands, but they are confident that the company will maintain a dividend payout ratio of 95%.