Haidilao International Holding Ltd
06862: XHKG (HKG)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
HK$36.80 | Wkbsk | Xllbxpgnl |
Haidilao Earnings: Cost Cuts Helped Margins but Management Remains Cautious on Near-Term Expansion
No-moat Haidilao’s first-half earnings were in line with the positive profit alert issued in July. Management maintained a cautious tone on new unit openings by not providing any guidance for this year. We fine-tuned our model but kept longer-term assumptions largely unchanged. Overall, we are maintaining our HKD 13.70 fair value estimate and view Haidilao shares as overvalued.