Haidilao International Holding Ltd

06862: XHKG (HKG)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	HK$45.20	Vywnw	Bjlvlxl

Haidilao Earnings: Rising Ticket Average Boosts Earnings Visibility; Shares Undervalued

Ivan Su

Aug 28, 2024

While Haidilao’s interim results don’t change our outlook for the company, we feel more confident coming out of its earnings call as the firm is seeing average spending improvement for the Chinese restaurant sector. While other pieces of the puzzle remain, we see increased earnings visibility for the sector, reinforcing our favorable long-term view. Overall, we maintain Haidilao’s fair value estimate at HKD 17.10. We think shares are undervalued, trading at just 12 times our estimated 2024 earnings.

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