HK Stock Market Move | HAIDILAO (06862) fell nearly 3% in the closing session, with institutions estimating a slight decrease in per capita spending in the first half of the year compared to the same period last year. Other businesses may drag down overall profit margins.

HAIDILAO (06862) dropped nearly 3% in the closing minutes, and as of the time of writing, it was down 2.34%, trading at HKD 11.27 with a transaction volume of HKD 122 million. CICC released a research report stating that it expects HAIDILAOs brand table turnover rate in the first half of 2026 to improve by a low single digit year-on-year. The performance from January to April was relatively good, while from May to June, the turnover rate declined year-on-year due to pressure from the consumer environment and extreme weather conditions in certain regions. It is expected that the average spending per customer in the first half of 2026 will remain stable with a slight decrease year-on-year, mainly due to more rational consumer sentiment (such as smaller order sizes or opting for lower-priced dishes). HAIDILAOs overall store opening strategy remains cautious, with the bank projecting that in the first half of 2026, HAIDILAO will open over 20 new self-operated stores, close over 30, and convert about 6 to franchise stores, while more than 10 franchise stores will be newly opened. CICC further indicated that it expects HAIDILAOs brand profit margin to remain resilient year-on-year in the first half of the year. On one hand, rising raw material prices, such as for beef, may increase material costs, and the company has increased its brand marketing expenditure during this period; on the other hand, the bank anticipates that the optimization of expenses will continue, and given the higher base for employee costs in the same period last year, there may be some year-on-year improvement this year. However, considering the rising proportion of low-margin businesses such as takeout, franchise store raw material sales, and new brands, as well as reduced income from converting self-operated stores to franchises and exchange gains, the bank predicts that the overall profit margin of the company may decline year-on-year in the first half of 2026.