Closing Down of 300 Branches

$HAIDILAO(06862.HK)$ many people here may think "wow hai di lao trading at an all time low now, cheaper than IPO price, good time to enter!"

But let me caution you here, prior to covid-19, when Hai Di Lao IPO, its already trading at a rich valuation!

Despite that, the share price just kept rocketing eventually to an All Time High of 80+ per share.

But recent news, the management has stated to close down 300 branches, which represents ~30% of the total branches. They also mentioned to halt expansion for an unspecified timeframe.

Bear in mind, when it was trading at 80+ dollar per share, investors were thinking that the growth of Hai Di Lao is unstoppable, but right now.... The growth is halted, worse still 1/3 of their branches (revenue generating machine) will stop for at least 2 years, I do think there's more time to remain at the sideline before catching a falling knife!

Growth stocks that is no longer growing = rich valuation no longer sustainable = Much much lower share price.