In a report released today, Walter Woo from CMB International Securities maintained a Buy rating on Haidilao International Holding, with a price target of HK$17.46.
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Walter Woo has given his Buy rating due to a combination of factors that suggest potential growth and stabilization for Haidilao International Holding. Despite weak results in the first half of 2025, Woo believes the negatives have already been accounted for in the stock price. He anticipates a stabilization of same-store sales in the latter half of 2025, supported by various company-specific initiatives.
Woo highlights several positive developments, including potential government policy support to boost consumption and improvements in same-store sales growth. The company is also revamping stores to cater to different themes, which could enhance sales. Additionally, product upgrades and an accelerated delivery business are expected to contribute positively. Woo also notes that while the number of self-operated restaurants has decreased, franchised restaurant growth is expected to accelerate, aided by mentorship strategies and reduced resource requirements. These factors collectively underpin Woo’s optimistic outlook for Haidilao’s future performance.
Woo covers the Consumer Cyclical sector, focusing on stocks such as Green Tea Group Limited, Xtep International Holdings, and ANTA Sports Products. According to TipRanks, Woo has an average return of 5.5% and a 60.18% success rate on recommended stocks.
In another report released yesterday, DBS also maintained a Buy rating on the stock with a HK$18.30 price target.