Hotpot Chain Haidilao’s Stock Surges as Covid Cost Cuts Bear Fruit

(Bloomberg) — Shares of China’s hotpot chain Haidilao International Holding Ltd. jumped the most in a year after the firm forecast a return to profitability, underscoring bets for a revival in consumption in the world’s No. 2 economy.

The stock rose as much as 20% in Hong Kong, the most since March 2022, to outperform all its peers on the benchmark Hang Seng Index on Monday. Haidilao said late Friday it expects to post a net income of no less than 1.3 billion yuan ($187 million) in 2022, versus a loss of 4.2 billion yuan in the previous year.