[ET Net News Agency, 3 December 2020] Citi Research lifted its target price for
Haidilao International (06862) to HK$55 from HK$32.7 and maintained its "neutral" rating.
The research house said Haidilao's table turns recovered to 3.5-4x and same-store
table turns returned to 80-90% of last year's level in October. Citi estimated that table
turns in November-to-date maintained at a similar level.
Despite uneven recovery pace across cities (with faster recovery in low-tier cities than
high-tier cities), the overall recovery of both SSS and table turns was largely in line
with Citi's expectation.
Citi anticipates continuous operation improvement in November-December (which is the
peak season for hot pot) and expects its SSS & same-store table turns to restore to over
90% of those in 2019 by end-2020. (KL)