Daily Investment Strategy
Daily focus：Haidilao（6862）
Haidilao In the first half of 2025, Haidilao faced challenges from intensified competition and changes in consumer demand. Revenue declined by 3.7% year-on-year to approximately RMB 20.7 billion, and net profit decreased by 13.7% to about RMB 1.75 billion. The main factor was a decline in the table turnover rate; the average table turnover rate at self-operated restaurants dropped from 4.2 to 3.8 times per day, while the average customer spending slightly increased to RMB 97.9. The company actively implemented the "Woodpecker Plan" to close underperforming outlets, while new self-operated and franchise stores maintained steady growth. The takeout business revenue grew nearly 60%, becoming a new growth point. Looking ahead, Haidilao’s management remains confident. Through brand upgrades, scenario innovation, multi-brand development, and franchise model expansion, they expect to open 40 new stores in the second half of the year, accelerating from the first half, striving to restore growth in the highly competitive catering market and will accelerate the expansion of its takeout business.
Threats to the Federal Reserve's independence spark concern
The S&P 500 rose 0.4% to 6,465.94 on Tuesday, rebounding from the previous day's losses. However, the controversial attempt by President Trump to fire Federal Reserve Board member Lisa Cook dominated market attention. This marked the first time in the Fed's 111-year history that a president has attempted to remove a member. Cook refused to resign and will challenge the decision through legal means. The Fed emphasized that members can only be removed "for cause," reaffirming the importance of central bank independence. The incident highlights the risks of political interference in monetary policy, potentially undermining the credibility of the US central bank and global confidence in the dollar's status as a reserve currency. Investors are also focused on Nvidia's quarterly earnings report, due after the market close on Wednesday. Analysts expect revenue of US$46bn, a 53% YoY increase. The results could impact the performance of AI-related stocks and the technology sector overall.
Hong Kong Stock Connect saw a net inflow of HK$16.57bn on Tuesday, with the Tracker Fund of Hong Kong (2800) receiving the largest inflow of HK$6.55bn, followed by the Hang Seng China Enterprises (2828). On the other hand, SMIC (0981) recorded the largest net outflow of HK$980mn, followed by Oriental Selection (1797).
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