[ET Net News Agency, 3 March 2021] Nomura tweaked its target price for Haidilao
International (HDL) (06862) to HK$89.1 from HK$91.3 and maintained its "buy" rating.
HDL estimated that its net profit decline by 90% in FY2020. The research house said the
profit warning was worse than Nomura's forecast of a 62% decline. Nomura cut its net
profit forecast by 66% for FY2020 accordingly.
HDL reported a net loss of CNY965mn in 1H 2020, implying a swift H-H recovery to
positive CNY1,200mn in 2H. Nomura views the 15% 2H net profit drop as decent, given the
lingering pandemic impact from certain regions in China.
With the COVID-19 situation continuing to improve, Nomura expects a faster recovery in
FY2021. (KL)