Shares in Chinese Hotpot Chain Haidilao Fall After Earnings Miss

By Megan Cheah

Shares of Chinese hotpot giant Haidilao International slipped after its profit for the first half missed expectations.

The Hong Kong-listed stock fell as much as 6.5% to 13.92 Hong Kong dollars on Tuesday before recouping some losses to trade at HK$14.56. That compared with the benchmark Hang Seng Index's 0.3% decline by midmorning trading.

Haidilao late Monday reported a 14% drop in first-half net profit to 1.76 billion yuan, equivalent to $246.1 million, due to lower table turnover and some product changes.

The figure missed estimates by about 10%, according to Citi analysts Xiaopo Wei and Vincent Young.

Revenue declined 3.7% from a year ago to 20.70 billion yuan, weighed by lower same-store sales.

However, the company's operating ratio, or operating expense as a percentage of sales, didn't deteriorate as feared, thanks to good cost control, the analysts said in a note.

Citi maintained its buy rating and target price of HK$24.20 on the hotpot restaurant operator.

Write to Megan Cheah at [e-mail]

(END) Dow Jones Newswires

08-25-25 2333ET