[ET Net News Agency, 4 March 2021] Macquarie Research lifted its target price for
Haidilao International (06862) to HK$63 from HK$57 but downgraded its rating to "neutral"
from "outperform" after a rally of 112% in the past year.
The research house said Haidilao's profit warning came as no surprise as the catering
industry was hard hit by the pandemic last year, but recovery is still slower than
Macquarie's expectation.
Macquarie continues to like the high-quality management team and the apprenticeship
system, which should ensure stable earnings growth in the longer term. It lowered its
FY2020 and FY2021 earnings by 68.6% and 6.4%, respectively, to reflect the FY2020 profit
warning and softer than expected recovery. (KL)