Morgan Stanley's research report states that Haidilao (06862.HK)'s net store closures and non-operational projects may drag down its first-half profit growth. However, the bank expects that due to the decrease in raw material costs, the dining and retail hybrid model, and the closure of loss-making stores, the company's profit margin will show more significant growth in the second half of the year. The bank expects that the group's revenue will increase by 15% year-on-year in the first half of the year, operating profit will increase by 10%, and operating profit margin will increase slightly by 0.3 percentage points to 11.9% compared to the past six months. Net profit decreased by 6%, and net profit margin was 9.8%.

The bank lowered the group's target price from 20 yuan to 18 yuan and maintained a "shareholding" rating.