Economic Information Daily, November 13 - Haidilao (06862) is currently down 5.2%, trading at HK$9.09. The stock has traded approximately 8.73 million shares, involving HK$803 million, with a daily high of HK$9.36 and a low of HK$9.08.
Haidilao announced that it will provide financial assistance to its controlling shareholder, executive director, chairman and CEO, Zhang Yong, by granting a Hong Kong dollar loan financing with a principal cap of RMB 100 million. The financing term is one month, with an interest rate of one-month Hong Kong dollar interbank offered rate plus 60 basis points. Zhang Yong's wife, Shu Ping, previously suddenly sold a large stake of 259 million shares through an offshore family trust holding entity, cashing out as much as RMB 2.75 billion, citing personal financial needs, which shocked the market.
*Citi says move could trigger investor concerns over controlling shareholder's funding needs*
Citi stated that this move could reignite investor concerns about the controlling shareholder's funding needs. In its analyst report, the bank noted that given this loan occurred only about five weeks after the controlling shareholder reduced their stake on September 8, and considering the market's renewed concerns over the controlling shareholder's funding needs, the bank expects investor sentiment toward Haidilao to turn negative in the short term. Citi has lowered its target price for Haidilao from HK$19.3 to HK$15.5, a decrease of 19.7%.
Currently, the Hang Seng Index stands at 24,057, down 213 points or 0.9%, with main board turnover exceeding HK$56.7 billion. The Hang Seng China Enterprises Index is at 8,081, down 87 points or 1.1%. The Hang Seng Tech Index is at 4,078, down 91 points or 2.2%. (vs)
Haidilao announced that it will provide financial assistance to its controlling shareholder, executive director, chairman and CEO, Zhang Yong, by granting a Hong Kong dollar loan financing with a principal cap of RMB 100 million. The financing term is one month, with an interest rate of one-month Hong Kong dollar interbank offered rate plus 60 basis points. Zhang Yong's wife, Shu Ping, previously suddenly sold a large stake of 259 million shares through an offshore family trust holding entity, cashing out as much as RMB 2.75 billion, citing personal financial needs, which shocked the market.
*Citi says move could trigger investor concerns over controlling shareholder's funding needs*
Citi stated that this move could reignite investor concerns about the controlling shareholder's funding needs. In its analyst report, the bank noted that given this loan occurred only about five weeks after the controlling shareholder reduced their stake on September 8, and considering the market's renewed concerns over the controlling shareholder's funding needs, the bank expects investor sentiment toward Haidilao to turn negative in the short term. Citi has lowered its target price for Haidilao from HK$19.3 to HK$15.5, a decrease of 19.7%.
Currently, the Hang Seng Index stands at 24,057, down 213 points or 0.9%, with main board turnover exceeding HK$56.7 billion. The Hang Seng China Enterprises Index is at 8,081, down 87 points or 1.1%. The Hang Seng Tech Index is at 4,078, down 91 points or 2.2%. (vs)
