KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Haidilao International Holding Ltd (6862.HK) shares fell as much as 6.5% in Hong Kong, the sharpest intraday drop since April, after China’s largest hotpot chain reported a second straight half-year revenue decline.
Earnings Snapshot
Revenue: ¥20.7B (▼3.7% YoY), in line with consensus.
Net Income: ¥1.76B (▼14% YoY).
Store Count: Self-operated restaurants fell to 1,322 from 1,343 a year earlier as the group continued to shut underperforming outlets.
Table Turnover: Dropped 9.5% YoY, underscoring demand pressure.
Key Headwinds
Weak Macro & Frugal Consumers: Slowing economic growth in China is weighing on discretionary spending, particularly at premium chains like Haidilao.
Price War in Food Delivery: Intense promotions — ¥1 drinks, free delivery, flash discounts — are pulling traffic away from dine-in restaurants.
Competition in Catering: Increased rivalry across China’s F&B sector continues to erode Haidilao’s traffic base.
Street Commentary
Morgan Stanley (July note): Weak macro environment and delivery-driven price competition are suppressing traffic and table turns.
Outlook: Revenue growth may stabilize in 2H25 from a lower base, aided by new catering brands and formats.
Investor Takeaway
The sell-off reflects mounting concern that Haidilao’s premium dine-in model is vulnerable in a frugal consumer environment. With operating leverage tied to traffic, further weakness in macro data or escalation of delivery discounts could extend earnings pressure. Investors will watch closely for:
2H recovery signs from new formats.
Management’s ability to defend margins amid price competition.
Broader macro stabilization to lift discretionary spending.
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