Haidilao Shares Fall to Two-Month Low on Earnings Miss

By Megan Cheah

Shares of Haidilao International fell to a two-month low after posting a weaker than expected net profit for 2025.

The stock declined as much as 9.8% to 14.42 Hong Kong dollars, equivalent to US$1.84, before paring losses to trade 8.1% lower.

The Chinese hotpot-restaurant operator reported its 2025 net profit fell 14% to 4.05 billion yuan, equivalent to US$587.6 million.

This was about 5.0% below market expectations, said DBS Group Research analyst Alison Fok in a note. The decline was likely due to a lower table turnover rate at its self-operated restaurants and fewer customer visits, particularly in tier 1 and 2 cities in China, she added.

Core operating profit also declined, partly reflecting the company's shift toward the delivery and new brands segments, which both suffered narrower margins, she said.

The company's dividend payout was trimmed to around 87.8% in 2025 from 94.7% a year ago, the analyst added.

She expect the company to detail its franchise store expansion strategy and delivery sales growth outlook at its post-earnings briefing. DBS Group Research is currently reviewing its buy rating and HK$18.30 target price, pending insights from the briefing.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

March 24, 2026 22:53 ET (02:53 GMT)