Bank of America: HaiDiLao's performance performance last year was mixed, with target price lowered to HK$15.1

Bank of America Securities published a research report, pointing out that Haidilao's performance last year was uneven, with revenue increasing by 1% year-on-year to 43.2 billion yuan, in line with expectations. However, net profit after tax decreased by 14% year-on-year to 4.1 billion yuan, 5% lower than market expectations. The bank pointed out that although Haidilao's table turnover rate has rebounded since the beginning of this year, gross profit margin pressure may continue until 2026, dragging down profit growth. It is still too early to evaluate the contribution of subsidiary brands due to limited operating records. Taking into account these factors, the bank lowered its earnings per share forecast for Haidilao for the next two years by 6% and 7% respectively, and lowered the target price by 8% to 15.1 Hong Kong dollars, reiterating a "neutral" rating.