Shares of Haidilao International climbed after its 2024 results surpassed market expectations.
The Chinese restaurant operator's shares rose as much as 7.5% to 17.84 Hong Kong dollars, equivalent to $2.29, Wednesday morning, putting them on track for their biggest one-day percentage gain since November.
Haidilao's net profit for the full year rose 4.6% to 4.71 billion yuan, while revenue increased 3.1% to 42.75 billion yuan.
The company's resilient profitability is mainly due to better gross profit margin, along with other income and gains contribution, Jefferies analysts said in a note.
This comes despite pressure on table turnover, following a high base in the second half of last year, they added.
The company's margin outlook for this year remains positive, Citi analysts said, citing a structurally improved cost structure.
The management's strategy to encourage differentiated store operation should also further boost store traffic, they said.
