BofAS Cuts HAIDILAO TP to HKD13, Reiterates Neutral

BofAS cut Haidilao's target price to HKD13 from HKD15.1 and reiterated a Neutral rating. While revenue forecasts were raised, earnings forecasts for FY2026-2027 were lowered by 4% due to conservative margin assumptions driven by franchise and takeaway growth. Despite weak consumer demand, core brand table turnover remained stable. The broker believes the recent 33% stock correction has largely priced in margin concerns.

BofAS published a research report stating that although it has raised its revenue forecasts for HAIDILAO (06862.HK) -0.210 (-1.795%) Short selling $53.97M; Ratio 22.115% , it lowered its earnings forecasts for FY2026 and FY2027 by 4% respectively due to more conservative margin assumptions. Based on a slowdown in growth prospects and a sector valuation multiple de-rating, the broker cut its TP from HKD15.1 to HKD13. However, as the stock has corrected by about 33% cumulatively from its February peak, it believes market concerns over margins have been largely priced in, and thus reiterates its Neutral rating.

The broker noted that a higher contribution from franchise operations, takeaway services and sub-brands will continue to pose margin headwinds this year. On the other hand, despite weak overall consumer demand, HAIDILAO’s core brand maintained low-single-digit table turnover rate growth in the first five months of the year. The broker expects the table turnover rate in June to remain stable, supported by the Dragon Boat Festival holiday. (sl/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-06-17 16:25.)