Haidilao (06862.HK) was under significant selling pressure this morning (20th), and the stock fell 6.25% to HKD 15.3 at noon. The turnover was 11.629 million shares, involving HKD 182 million.

Goldman Sachs report pointed out that due to the high profit margin base and less non-operating income in the first half of last year, the profit performance of Haidilao may not have excited the market, and the bank expects its first-half net profit to be flat year on year. The current valuation of the stock is equivalent to a PE of 17 times the forecast for 2024, and it is believed that recent solid income has already been reflected. The bank maintains a "Sell" rating with a target price of HKD 15.8.