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Haidilao (6862): 2025 revenue was RMB 43.225 billion, a slight increase of only 1.1% year-on-year. However, affected by the overall decline in table turnover rate and product model adjustments, profitability declined, with net profit for the year recording RMB 4.042 billion, a decrease of 14.0% year-on-year; core operating profit also fell 13.3% to RMB 5.403 billion. Looking ahead to 2026, the Group plans to achieve mid-single-digit growth in the number of Haidilao brand stores and will focus on expanding new brands such as "Seafood Stalls" and "Sushi." The first quarter of 2026 showed signs of recovery, with table turnover rate recording mid-single-digit year-on-year growth. To boost market confidence, founder Zhang Yong announced plans to increase his shareholding by no less than HK$100 million within 12 months. The Group will continue to invest in its "Intelligent Platform" to improve management efficiency and seek acquisition opportunities for high-quality assets in a highly competitive market.
China's PPI rose 0.5% year-on-year, marking the first positive growth in 42 months
China's March macroeconomic data indicates a key turning point for the economy. The PPI rose 0.5% year-on-year, the first positive growth in 42 months, signifying that domestic demand recovery and rising commodity prices are leading the country out of the shadow of deflation. Although the CPI was slightly lowered to 1% year-on-year due to lower pork prices, the overall price level remained rigid and entered a moderate upward trend, supported by international oil prices and non-food prices. On the production side, the PPI for mining and processing industries performed strongly, recording positive growth for six consecutive months, reflecting the dual benefits of recovering demand and increased industrial consumption. This positive PPI indicates that corporate profitability improvement is about to accelerate. With strengthening expectations of "reflation," macroeconomic momentum is expected to maintain a positive growth trend in the long term against the backdrop of continued recovery in domestic demand and global trade recovery, significantly boosting market confidence in a long-term steady economic recovery.
On Friday, net outflows through the Hong Kong Stock Connect totaled HK$2.815 billion. Alibaba-W (09988) saw the largest inflow at HK$945 million, followed by Guotai Junan International (01788). The Tracker Fund of Hong Kong (02800) recorded the largest net outflow at HK$2.74 billion, followed by Southern Hang Seng Technology (03033).
Leung Kai Tong is a SFC licensed person accredited to KGI Group to carry on regulated activities (for details, please refer to https://apps.sfc.hk/publicregWeb/indi/ADU276/details). He and/or his associate do not have any financial interest in the recommended issuer or new listing applicant.
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