Citigroup: Hai Di Lao's outlook for 2026 may be more optimistic than expected.

Citigroup analysts said in a report that the outlook for Haidilao in 2026 is more optimistic than market expectations. The Chinese hotpot chain operator remains optimistic about the continued recovery of the leisure dining industry in China, with Citigroup analysts stating that this view is consistent with that of beer maker CR Beer. The analysts estimated that the turnover rate at Haidilao restaurants in the first quarter of 1-3 may have increased by a single digit year-on-year. They said the company also plans to increase capital expenditure to drive growth, which may be the reason why dividends were not increased in 2025. They believe that Haidilao's revenue this year may achieve a mid-to-high single-digit growth rate. Citigroup maintains its buy rating and a target price of HK$19.70. The stock fell 10% to HK$14.33.