Movement Alert|Haidilao Falls 3.12% in Regular Trading, Food Safety Concerns Persist as BofA Cuts Target Price

Market Focus06-22

On June 22, Haidilao fell 3.12% in regular trading, trading at 11.27 HKD/share, with turnover of approximately 51.53 million HKD. The stock continued its downward trajectory despite controlling shareholder Zhang Yong recently purchasing 11.35 million shares.

On the news front, food safety issues continue to weigh on investor sentiment. A Guangzhou store remains under investigation by local market regulators after a misdelivered beverage was found to contain acetaminophen tablets, compounding earlier quality control incidents this year including contaminated hotpot bases. Meanwhile, Bank of America Securities on June 18 cut its target price from 15.1 HKD to 13 HKD, reiterating a Neutral rating. The firm lowered earnings estimates for fiscal years 2026 and 2027 by 4% respectively, citing more conservative margin expectations as rising contributions from franchise operations, delivery services, and sub-brands create persistent margin headwinds. BofA noted that the stock has already declined approximately 33% from its February high, largely reflecting market concerns over profitability pressures.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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