Haidilao International initiated with a Hold at Deutsche Bank

Deutsche Bank analyst Han Zhang initiated coverage of Haidilao International with a Hold rating and HK$15.90 price target, citing what the firm calls a “fair valuation.” The firm, which has a conservative view on China’s restaurant industry, prefers limited-service restaurants over full-service restaurants due to greater flexibility in controlling new-store openings and prefers Western food due to it taking share from Chinese food.