Taking a bigger step back and see the whole picture now Now, when we analyse the same stock from a longer time frame, suddenly the long spike up does not look as scary anymore.
Upon closer examination, one can see clearly that the price has been range bound since Nov 2021 which was the covid period. Haidilao famous for its restaurants hotpot was badly hit since people are stucked at home.
Fast forward to today...........if you have missed the boat at the bottom price point of 11.48, does it really matter ? I would argue that the margin of safety is better once it has rallied and breaks above the resistance at 23.40. Remember, it is not the guy who spotted the lowest price and win the game but the one who is able to catch the trend and ride with it.
Next profit target 30 then 50......how long will it takes ? I dunno, meanwhile I am enjoying my hotpot and see the restaurant full house and enjoying my 7% dividends while waiting for a bonus capital appreciation.....haha
8HI trade ideas
Chinese consumers - will they spend more now with the stimulus ?Nobody knows until the next sets of data starts to roll in . With the upcoming Labour Day holidays, 1st Oct, it is reasonable to expect more Chinese will travel if not outbound , it will be inbound travel within the country. Hospitality , Food & Beverage sectors, entertainment, shopping malls should benefit from this holiday.
We can see from the weekly chart that there is strong support at the 11.48 price level and a very nice bullish candle rallying with the recent government stimulus. With the past three days of rally, will this be a long term breakout or like before, a short lived one? I am more optimistic than before and has accumulated many consumer stocks and this is one of them.
A place of gathering, family unions , friends party, etc - HDL is the place to go to with good service and numerous outlets to provide. I believe while waiting for its capital appreciation and one can still and collect 6% dividend is not a bad investment at all.......
What do you think ?
Upside potential more than downside This stock has plunged so low that it is almost impossible to go even lower already ! With the restaurants business reopening in main Tier 1 cities like Shanghai and Beijing, I expect the returns of the customers to boost its revenue greatly.
Plan to nibble some later.
Rainy weather , best to eat steamboat with family !The weather has been raining for the past few days here in SG and we were told that this pattern might continue ........
And to many Chinese, they love to eat steamboat ! And one popular restaurant serving steamboat that offers excellent customer service and wide variety of food is Haidilao. If you have been to any of their outlets here , it is not surprising to queue for more than a hour before you can get a table.
Of course now they are affected by the COvid and how many patrons allowed per table. Hopefully, with the vaccination rates going up and eventually economy picking up, more people will return to the norm and go eat their favourite steamboat !
The chart shows a double bottom pattern within the channel but I am not nibbling prematurely as it could possibly have another leg down. So, I will wait patiently for it to breakout first .........
Haidilao Releases H1 2021 Financial ResultsIn the first half of 2021, Haidilao's revenue increased by 105.9% year-on-year, and its net profit turned from loss to profit.
According to the interim performance report of 2021:
- The operating revenue was CNY 20.094 billion (up 105.9% year-on-year).
- The net profit was CNY 96.5 million, compared with a net loss of 965 million yuan in the same period last year.
- Customers' per capita consumption decreased from CNY 112.8 in the first half of 2020 to CNY 107.3 in the same period in 2021, close to the level in 2019 before the epidemic.
- The operating revenue of Haidilao restaurant in H1 2021 reached CNY 19.419 billion, achieving an increase of 112.2%. It accounted for 96.6% of the total revenue from 93.7% in the same period last year. The proportion of takeout business decreased to 1.7% from 4.2% accordingly.
- As of June 30, 2021, Haidilao had 1597 global stores.
- The average turnover rate of Haidilao in the first half of 2021 was only 3.0 times per day.
- The number of members was 85 million, accounting for over 80% of the total turnover.
- Up to now, Haidilao has built and renovated more than 100 new technology restaurants. The intelligent boiler dispenser has been applied in more than 70 stores, the vegetable delivery robot has been deployed in more than 1000 stores, and the intelligent exhaust equipment has been deployed in more than 600 stores.
In order to strengthen internal management and operation, Haidilao adjusted its organizational structure in the first half of 2021. Besides, it also enriches customers' dining experience through diversified products, and hands over the power to launch more new products to regions themselves.
Meanwhile, Haidilao also announced the changes in the members of the board of directors, adding seven executive directors Yang Lijuan and two independent non-executive directors, so as to further realize the rejuvenation of the enterprise management team.
Steamboat for dinner, anyone ?With the China economy reporting better trade figures and vaccines being distributed very quickly, I am confident the restaurants businesses will return to its pre-pandemic level soon.
This stock has dropped 40+% from the peak and I am accumulating more of it. The founder is a strategic businessman, leveraging on the property prices falling during the Covid-19 time to bargain for cheaper rent, I believe. Or maybe, bought some under the company name. I would do that if I have the money ,haha.
Please do your own due diligence.
HaiDiLaoSo when I look at this in a daily chart, I think its obviously ina downtrend that is awaiting for future drops. however, when zoomed in to hourly, a clear oversold situation have been presented by chart, which suggests a possible short-term upside. So I am awaitng a climb, and see if the negative resisitance line could be broken or not. If so, long. Else, continue and hold your shorts :P