Nomura raises HAIDILAO's target price to 18.4 yuan, expecting multiple favorable factors this year

Nomura published a research report indicating that HAIDILAO (06862.HK) performed below expectations last year, with the main disappointment being the annual dividend payout ratio reduced from approximately 95% in 2024 to about 87%; it maintained a "Buy" rating for HAIDILAO, raising the target price from HKD 17.3 to HKD 18.4.

The report stated that the company's total revenue for the year only slightly increased by 1.1% year-on-year to RMB 43.23 billion, which was roughly in line with market expectations, but core operating profit fell by 13% year-on-year, primarily due to the annual table turnover rate dropping to 3.9 times, a decline in gross profit margin by 2.6 percentage points to 37.9%, and increased business development expenses. The report believes that despite last year's disappointing performance, the company still has several growth catalysts in 2026