UOB Kay Hian analyst has maintained their bullish stance on HDALF stock, giving a Buy rating today.
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UOB Kay Hian’s rating is based on Haidilao International Holding’s strategic plans and financial health. Despite a slight miss in net profit expectations for the first half of 2025, the company has shown resilience with revenue figures aligning with market forecasts. The management’s commitment to expanding its restaurant network under the Pomegranate Plan, with over 40 new outlets expected in the second half of 2025, indicates a strong growth trajectory.
Moreover, Haidilao’s ability to maintain a healthy cash flow and limited capital expenditure suggests the potential for sustained high dividend payouts, which is attractive to shareholders. The company’s diverse brand portfolio and operations across various regions further bolster its market position. These factors contribute to UOB Kay Hian’s confidence in maintaining a Buy rating, albeit with a slightly reduced target price to reflect near-term challenges.
In another report released today, CMB International Securities also maintained a Buy rating on the stock with a HK$17.46 price target.