Haidilao International, the largest hotpot restaurant chain in China, jumped as much as more than 15% to hit a high of HK$22.55, before closing 12.2% higher at HK$21.85.
Other catering companies are also rallying in Hong Kong, with Xiabuxiabu surging more than 8%, Jiumaojiu up more than 6% and Yum China up more than 3%.
Haidilao said it’s expected to record a net profit from continuing operations of no less than 2.2 billion yuan for the six months ended June 30, 2023, as compared to the 72 million yuan a year earlier.
The expected profit is mainly attributable to the increase in table turnover rate and the enhanced restaurant operation efficiency as a result of the improvement of internal management and operation.
Haidilao’s first half next profit and gross profit margin both reached new highs since its listings, beating market consensus and Morgan Stanley’s expectation. The bank expects Haidilao’s revenue to continue to recover in the second half and the market is expected to raise the forecast of the company’s revenue in 2023 and 2024 to 3.2 – 4 billion yuan, with a gross profit margin of 7.55 – 8.6%.
In addition, the National Development and Reform Commission, the top economic planner, said on Monday that China will take measures to recover and expand consumption, including expanding catering consumption.
