Damo: Reduce the target price of Haidilao (06862) to HK$16.5 and lower revenue and net profit forecasts

The Zhitong Finance App learned that Morgan Stanley released a research report saying that Haidilao (06862)'s revenue growth in the first half of the year was slower than expected. Coupled with the company becoming more cautious about expanding non-hot pot stores and focusing on profitability, its revenue forecast for the 2026-28 fiscal year was lowered by 3%, respectively, while the net profit forecast was lowered by 5 to 9%. The bank reduced the target price of Haidilao from HK$17.5 to HK$16.5 and renewed the “Overweight” rating. However, Damo expects Haidilao's revenue to increase 9% year-on-year and operating profit to increase 13% in the second half of the year. The bank expects that as the operating efficiency of the non-hot pot business improves, the company's operating profit from 2027 to 28 will maintain a medium ten-digit increase.