Haidilao shares plunge following major shareholder bulk sale

Haidilao shares experienced a significant decline on September 9, dropping as much as 12.13% during intraday trading to reach a low of 10 HKD. The volatility was triggered by a massive bulk transaction involving approximately 259 million shares, valued at roughly 2.75 billion HKD.

Market reports indicate the sale was conducted at 10.62 HKD per share, representing a discount of approximately 6.68% from the previous day's closing price. The transaction is widely attributed to Shu Ping, the wife of Haidilao founder and CEO Zhang Yong, who reportedly planned to sell the shares through UBS. This divestment is considered unexpected by analysts, as Zhang Yong had recently increased his own holdings in May.

Morgan Stanley noted that while the large-scale sale may pressure market sentiment in the short term, the firm maintains an ‘overweight’ rating with a target price of 16.50 HKD. The stock movement follows Haidilao's mid-year results, which showed a 7.9% increase in revenue but nearly flat net profit growth, as the company's traditional restaurant business faced pressure while delivery services saw rapid expansion.