China International Capital Corporation released a research report, giving a "bullish" rating to Haidilao International (09658.HK) with a target price of 14.7 yuan. The bank expects the company's revenue to reach US$770 million and US$869 million in the next two years, respectively. During the period, the adjusted net profit is expected to be RMB 32 million and RMB 47 million, with forecasted earnings per share of 0.03 yuan and 0.07 yuan, respectively.

The bank believes that the company is still in the stage of expanding its stores and improving its single-store model, and has not fully realized economies of scale. By improving operations and increasing table turnover rates to enhance store efficiency, stabilizing the scale effect of opening stores to dilute headquarters costs and increase profit margins, the bank is bullish on the future profit release. Haidilao International mainly expands and operates Haidilao stores in overseas markets. The bank estimates that the company has a potential space for about 300 store openings.