Journalist PR
    Facebook Twitter Instagram
    Journalist PR
    • Tech
    • Entertainment
    • Celebrity
    • Health
    • Games
    • Politics
    • Trending
    Journalist PR
    Home»Finance»China’s Hotpot Chain Grows By 20% As Cost Cuts By COVID Pay Off

    China’s Hotpot Chain Grows By 20% As Cost Cuts By COVID Pay Off

    0
    By Sam Houston on February 27, 2023 Finance
    China's Hotpot Chain Grows By 20% As Cost Cuts By COVID Pay Off
    China's Hotpot Chain Grows By 20% As Cost Cuts By COVID Pay Off
    Share
    Facebook Twitter LinkedIn Pinterest Email

    When the company anticipated a return to profitability, shares of China’s hotpot chain Haidilao International Holding Ltd. soared the most in a year, highlighting predictions for a resurgence in consumption in the world’s second largest economy.

    On Monday, the stock outperformed all of its competitors on the benchmark Hang Seng Index by rising as much as 20% in Hong Kong. This was the highest percentage gain since March 2022. Late in the day on Friday, Haidilao said that the company anticipates it would have a net income of at least 1.3 billion yuan ($187 million) in 2022, compared to a loss of 4.2 billion yuan in the previous year.

    The company attributes the improved outlook to efforts to streamline its operations as well as a gain of around 329 million yuan recognized on the cancellation of bonds due in 2026. This gain was achieved despite the fact that revenue is anticipated to drop by approximately 16%.

    “This result suggests that operating efficiency driven by cost-control measures is even stronger and faster than we thought,” Morgan Stanley analysts including Hildy Ling wrote in a note. “We expect consensus to revise up 2023 earnings forecasts based on this margin surprise,” they added.

    From November through early January, Haidilao saw its share price increase by 117%, and the company’s stock was among the best performers on the HSI for the entire year. Haidilao is considered to be one of the primary benefactors of China’s reopening.

    The upbeat outlook is a turnaround in fortunes for a company that was one of the most impacted during the height of pandemic-era curbs due to China’s rigorous Covid Zero policy. The upbeat outlook represents a reversal of fortunes.

    The estimates also speak to a wider confidence among reopened stocks, with analysts saying that cost restraint paired with the recovery of demand will bode good for China’s consumer sector. This bodes well for China’s consumption industry.

    More News:

    • With Business “Firmly In Retreat,” Carvana Debts Are Coming Due
    • Wells Fargo Thinks That The Bank Of Israel Will Save The “Oversold” Shekel

    In accordance with the so-called “Woodpecker plan,” Haidilao shut down 26 restaurants during the first half of the previous year. Moreover, in March of this year, the company’s founder Zhang Yong resigned from his position as chief executive officer.

    China's Hotpot Chain Grows By 20% As Cost Cuts By COVID Pay Off
    China’s Hotpot Chain Grows By 20% As Cost Cuts By COVID Pay Off

    They added-

    “We expect its table-turn to further improve sequentially upon China’s re-opening,” Citigroup Inc. analysts including Xiaopo Wei wrote in a note. Given the new cost structure and more flexible staffing, “stores being reopened will have a much lower sales threshold to achieve break-even than in prior years” 

    I hope you like our article. If this is the case, we would appreciate it if you would share your insightful ideas in the comments below. You may get even more of these updates by adding Journalistpr.com. to your collection of bookmarks.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Avatar photo
    Sam Houston

    Journalistpr bestselling author Sam Houston is a former journalist who has interviewed murderers on death row, flown over L.A. with the LAPD. He’s also reported from the Caribbean, Africa and Kuwait’s border with Iraq. His books have been published in nearly 30 countries, including an illegal translation produced in Iran.

    Related Posts

    After A Two-year Saga, Texas Will Sell Its Record $3.5 Billion Municipal Deal

    After A Two-year Saga, Texas Will Sell Its Record $3.5 Billion Municipal Deal

    March 7, 2023
    Before The Fed Chair's Testimony, Oil Goes Up For The Sixth Time In A Row

    Before The Fed Chair’s Testimony, Oil Goes Up For The Sixth Time In A Row

    March 7, 2023
    Rivian Plans To Raise Money By Selling $1.3 Billion In Bonds, Shares Fall

    Rivian Plans To Raise Money By Selling $1.3 Billion In Bonds, Shares Fall

    March 7, 2023

    Leave A Reply Cancel Reply

    Latest Post
    Ethan Suplee Weight Loss

    Ethan Suplee Weight Loss: Reveals Incredible Transformation in Shirtless Pool Pic

    March 20, 2023
    Is SZA Dating Bill Nye

    Is SZA Dating Bill Nye? Latest Information About Their Relationship!

    March 20, 2023
    Who is Jordan Poole Dating?

    Who is Jordan Poole Dating? All About His Love Journey

    March 20, 2023
    Who is Pete Davidson Dating

    Who is Pete Davidson Dating? The Real Story Behind His Dating History!

    March 20, 2023
    LaTocha Scott Husband

    LaTocha Scott Husband: The Inspiring Story of Queens of R&B Star Marriage!

    March 20, 2023
    Def Leppard Drummer Rick Allen Assaulted In Florida

    Def Leppard Drummer Rick Allen Assaulted In Florida

    March 19, 2023
    About Us

    Here on this Blog journalistpr.com, we will share all the best and authentic information related to Tech news and lots more.

    The modern age requires people to be informed about the latest events in the world. Information portal «journalist PR» is engaged in news coverage of science and technology. Information is provided in the most promising online magazine format containing deployed articles, a mass of colourful illustrations and photographs, as well as entertaining videos and full-length science-fiction movies.

    Latest Posts
    Ethan Suplee Weight Loss

    Ethan Suplee Weight Loss: Reveals Incredible Transformation in Shirtless Pool Pic

    March 20, 2023
    Is SZA Dating Bill Nye

    Is SZA Dating Bill Nye? Latest Information About Their Relationship!

    March 20, 2023
    Who is Jordan Poole Dating?

    Who is Jordan Poole Dating? All About His Love Journey

    March 20, 2023
    Follow Us On
    • Facebook
    • Twitter

    Type above and press Enter to search. Press Esc to cancel.

    Go to mobile version