Haidilao said it expects to record a net profit of no less than 1.3 billion yuan (about $187 million) for 2022, compared to a loss of 4.16 billion yuan in 2021, also helped by a gain of 329 million yuan on the cancellation of its 2026 notes as well as its restructuring plan. The company's business performance will be further improved, it said late on Friday, due to the easing of COVID curbs in mainland China. Brokerage Nomura said the company's adjusted net profit margin in the second half of last year could return to the level seen in the second half of 2020, and the faster-than-expected margin recovery trend may boost sentiment on the stock. The stock is up roughly 90% since the start of November, far outperforming the broader Hang Seng Index's gain of 35% in the same period. Shares of Jiumaojiu International, LH Group, Cafe De Coral, China Resources Beer and Budweiser Brewing Co APAC all rose between 2% and 4% on Monday after Haidilao's forecast. (Reporting by Ankur Banerjee in Singapore; Editing by Savio D'Souza)
Twitter: @AnkurBanerjee17;)) SINGAPORE, Feb 27 (Reuters) - Shares of Haidilao
International Holding Ltd soared as much as 20% on
Monday after the Beijing-based hotpot restaurant chain said it
would be profitable for 2022, boosting other food and beverage
stocks on bets of a revival of demand in China.
Haidilao's stock scaled a one-month high of HK$23.15, before
easing to trade up 12% at HK$21.50. It was the biggest
percentage gainer on Hong Kong's Hang Seng Index , which
was down 0.63% on the day due to geopolitical worries.
China started dismantling its 'zero-COVID' restrictions in
December, in a boost to consumer and food companies that were
battered during the pandemic, with Haidilao and peers Jiumaojiu
International Holdings Ltd , LH Group Ltd and
Cafe De Coral among those expected to benefit.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.