Text/Liu Zhentao
Haidilao's stock price has reached a new low!
On October 27, Haidilao opened low and went low, falling more than 8% intraday, and the stock price hit a new low of 23.1 Hong Kong dollars per share during the year. As of press time, Haidilao's share price fell 7.33% to HK$23.40 per share, with a latest total market capitalization of HK$127.7 billion (about RMB104.8 billion).
K-line chart data shows that from October 21 to October 27, Haidilao's stock price has fallen for 5 consecutive trading days, with a cumulative decline of 23.61%. If the long-term dimension is extended, the decline in Haidilao will be even greater.
According to the data, on February 16, 2021, Haidilao had come out of the record high price of HK$85.779 per share, and the total market value once reached HK$468.2 billion (about 384.251 billion yuan). Subsequently, the stock price fell and fell. In the eight months or so ended October 27, the share price fell by 72% from its peak in the year, and the total market value evaporated by about HK$340.5 billion (about 279.4 billion yuan).
Haidilao's stock price has fallen sharply this year, probably for two reasons:
On the one hand, the fundamental performance is not satisfactory. On March 23, 2021, Haidilao released the 2020 annual performance announcement showing that the annual revenue was 28.61 billion yuan, an increase of 7.8% year-on-year, and the annual net profit was 309 million yuan, down 86.8% year-on-year, which was seriously lower than market expectations.
At the subsequent annual 2020 results conference, Daniel Zhang, the founder of Haidilao, said, "I misjudged the trend, and now I see that I am indeed blindly confident." And for whether Haidilao's performance will maintain growth in the future, Daniel Zhang also said that he, as the largest shareholder of Haidilao, does not hold out hope.
According to the 2021 interim report released on September 23, in the first half of 2021, Haidilao achieved operating income of 20.094 billion yuan and net profit of 945.290 billion yuan, an increase of 110% year-on-year. However, due to the impact of the epidemic in 2020 and other reasons, the net profit in the first half of the year was a large loss of 965 million yuan, which is not much comparatory. Compared with the normal year, this is the worst half year of Haidilao's net profit since its listing.
Performance is usually the support of stock prices, performance is not ideal, natural stock prices are difficult to have the motivation to rise.
On the other hand, from the market news, recently, some media reported that consumers found a serious shortage of two pounds when they went to Haidilao to consume - a 200g of hair belly, which was only 138g when weighed, and the weight was directly reduced by one-third. The fact that Haidilao lacked two pounds and two pounds was also quickly on the hot search.
Subsequently, Haidilao issued a statement saying that the products needed to be stored within half an hour after being placed on the plate as required. Customers eat at 4:00 a.m., because the staff put them in the freezer in advance and put them in the freezer, the product characteristics lead to water loss. It is an operational error and has been strengthened for rectification. On the day of the incident, he apologized to the customer in person and supported the customer to protect his rights according to law. Due to the customer's request for 20,000 cash compensation, no agreement could be reached, and it has been voluntarily reported to the Marketing Bureau.
In addition, Haidilao belongs to the catering consumption industry sector, and since the beginning of this year, the overall performance of the consumer sector has been relatively sluggish, and the stock prices of related stocks have dropped sharply. For example, the same track industry's sipping and breastfeeding fell by 70% during the year, and the highest decline in jiumao in nine years also reached 40%.
Haidilao's performance was not satisfactory, and its stock price fell sharply, causing many international rating agencies to lower their target prices.
On October 27, Credit Suisse issued a research report to lower haidilao's target price from HK$32 to HK$25.5, and Bank of America Securities issued a report to reduce Haidilao's 2021 and 2022 earnings per share by 63% and 40% respectively to reflect the slowdown in expansion and declining profitability. The price target was lowered from HK$34 to HK$28.7, reiterating the neutral rating.
It is worth noting that the founder Daniel Zhang is the actual controller and the largest shareholder of Haidilao. Previously, with the soaring share price of Haidilao, the wealth of Daniel Zhang has also risen, and it has repeatedly topped the position of Singapore's richest man.
Since entering 2021, with the sharp decline in Haidilao's stock price and the evaporation of more than 300 billion Hong Kong dollars in market value, the wealth of Daniel Zhang has also shrunk sharply, losing the position of The richest man in Singapore.
On October 27, according to the "2021 Hurun Rich List" released by the Hurun Research Institute, the latest wealth of the Daniel Zhang couple was 95 billion yuan, a 51% decline in wealth. According to the "2020 Hurun Rich List", the wealth of Daniel Zhang couple reached 195 billion yuan. Compared with 2020, the wealth of Daniel Zhang couple shrank by 100 billion yuan.
At present, Haidilao's stock price is still in a downward trend, when will it stabilize? For the future trend of Haidilao, we will keep an eye on it!