Investment Rating - The report provides various investment ratings for companies in the consumer staples sector, with "Outperform" ratings for companies like China Feihe, Haidilao, and China Resources Beer, while Budweiser APAC is rated as "Neutral" [1]. Core Insights - The report highlights a rise in packaging material prices and an increase in the beer spot cost index by 2.96% year-on-year, indicating upward pressure on costs in the consumer staples sector [1][35]. - The cost indices for six categories of consumer goods monitored by HTI mostly increased, with notable changes in spot and futures indices across beer, frozen food, soft drinks, instant noodles, dairy products, and condiments [35]. Summary by Category Beer - The beer spot cost index is at 116.32, down 0.06% from last week, while the futures index is at 115.68, up 1.2% [13]. - Year-to-date, the spot index has decreased by 0.86%, and the futures index has decreased by 7.13% [14]. Condiments - The condiments spot cost index is at 100.51, down 0.1%, and the futures index is at 101.3, up 1.55% [17]. - Year-to-date, the spot index has decreased by 2.66%, and the futures index has decreased by 7.47% [17]. Dairy Products - The dairy products spot cost index is at 101.25, down 0.13%, and the futures index is at 91.04, up 0.69% [20]. - Year-to-date, the spot index has decreased by 2.89%, and the futures index has decreased by 3.28% [20]. Instant Noodles - The instant noodles spot cost index is at 103.62, down 0.23%, and the futures index is at 102.53, up 0.88% [23]. - Year-to-date, the spot index has decreased by 2.29%, and the futures index has decreased by 5.47% [24]. Frozen Food - The frozen food spot cost index is at 120.39, up 1.02%, and the futures index is at 119.44, up 1.72% [28]. - Year-to-date, the spot index has decreased by 0.17%, and the futures index has decreased by 1.35% [28]. Soft Drinks - The soft drinks spot cost index is at 109.39, up 0.22%, and the futures index is at 109.26, up 0.72% [31]. - Year-to-date, the spot index has decreased by 3.04%, and the futures index has decreased by 9.54% [31].

Core Viewpoint - In the current market environment, companies need to possess the ability to cope with uncertainties, with Domino's Pizza showcasing strong resilience and growth despite challenges [1]. Group 1: Financial Performance - Domino's Pizza reported a 6.2% year-on-year revenue growth in Q3 2025, reaching $1.15 billion, with same-store sales growth of 5.2% in the U.S. and 1.7% internationally [1]. - The company's operating profit increased by 12.2% year-on-year, with net profit reaching $139 million, demonstrating operational resilience in a complex environment [1]. Group 2: Store Expansion Strategy - Domino's China, through its exclusive franchisee, achieved a net addition of 275 stores in Q3 2025, operating a total of 1,283 stores across 51 cities in mainland China [2]. - The company met its target of opening 300 new stores for the entire year, with a steady increase in same-store sales across both group and first-tier cities [2]. - Historical data shows a consistent increase in net new stores from 120 in 2022 to 240 in 2024, indicating positive progress in regional market expansion [2]. Group 3: New Store Performance - The first store in Handan achieved sales of over 6.8 million RMB in its first month, ranking fifth globally for first-month sales [3]. - The first store in Xuzhou set a new global record for single-day sales at over 680,000 RMB on its opening day [3]. - Among 64 new stores opened in 15 cities, 24 have already achieved full cash recovery, with an average payback period of under one year, showcasing industry-leading investment return efficiency [3]. Group 4: Digitalization and Operational Efficiency - Domino's China implements a "4D" strategy focusing on high-quality store development, cost-effective delicious pizzas, efficient delivery experiences, and digital capabilities [4]. - The "Da Ren Hui" membership program has grown to 32.9 million members, a 51.6% increase year-on-year, contributing 66% of revenue, thus enhancing user retention and creating a private traffic moat [5]. - The company has maintained strong operational performance, with 49 out of the top 50 sales positions in the first 30 days globally held by Domino's China [5]. Group 5: Product Innovation and Brand Building - The company focuses on consumer demand in product development, continuously launching new products tailored to Chinese tastes, enhancing market adaptability [6]. - New product launches include various innovative pizzas and dessert options, reflecting ongoing product innovation capabilities [6]. - Recent promotional activities, such as the "Buy One Get One Free" campaign, and product upgrades have improved consumer engagement and perceived value [7]. Group 6: Overall Market Position - Domino's China has established itself as the second-largest player in the Chinese pizza market, supported by effective regional market expansion and operational strategies [3]. - The company's ability to navigate a competitive landscape through precise store expansion, digital empowerment, and product innovation positions it for sustained growth [9].

Core Insights - The Chinese pizza market is expanding, with Domino's Pizza achieving significant sales milestones and rapid store openings, particularly in lower-tier cities [1][10][13] - The company has faced challenges related to maintaining product quality and customer service amid aggressive expansion [2][20] - Despite initial losses, the company has shown signs of recovery with improved financial performance in recent years [11][13] Group 1: Sales Performance - On October 1, 2025, Domino's opened its first store in Xuzhou, achieving sales exceeding 680,000 yuan, setting a global record for single-day sales [1] - In the first month of its store opening in Handan, sales surpassed 6.8 million yuan, while the Shenyang store achieved over 31 million yuan in annual sales within 198 days [1] - As of September 2025, Domino's had a total of 1,283 stores in China, with a net increase of 275 stores this year, achieving its goal of 300 new openings [1][10] Group 2: Market Strategy - The company has focused on rapid store expansion to increase market penetration and brand awareness, particularly in non-first-tier cities, where 58.2% of its revenue now comes from [9][13] - The strategy has been effective in reversing previous losses, with the company reporting a significant reduction in losses in 2023 and achieving a positive adjusted net profit for the first time [11][13] Group 3: Customer Feedback and Challenges - Despite its growing popularity, the company has faced a rising number of complaints, with 14 complaints reported in October alone, including issues related to expired coupons and food safety [2][20] - The rapid expansion has led to challenges in maintaining consistent product quality and service levels across its growing number of stores [2][20] - The average daily sales per store have declined, with a drop of 4.4% in 2025 compared to the previous year, indicating potential issues with customer retention and satisfaction [16][19]

Group 1 - The core viewpoint is that Domino's China is rapidly expanding its store network while seeking a balance between scale and profitability, particularly focusing on lower-tier markets [1][11] - As of the third quarter of this year, Domino's China has added 275 new stores, achieving nearly 100% of its goal of 300 new openings for the year [2][1] - The company has shifted its focus from first-tier cities to lower-tier markets, with a total of 1,283 stores in mainland China, making it the third-largest international market for Domino's globally [4][7] Group 2 - New store openings in lower-tier markets have resulted in record sales, with the first store in Xuzhou achieving over 680,000 yuan in sales on its opening day, setting a global record [6][7] - Despite rapid expansion, same-store sales growth has declined from 8.9% in 2023 to 2.5% in 2024, with a further drop to -1% in the first half of 2025, marking the lowest level since 2017 [14][11] - The average transaction value has decreased from 86.8 yuan in the previous year to 82.1 yuan in 2024, reflecting challenges in maintaining profitability amid aggressive expansion [11][14] Group 3 - The competitive landscape in the pizza market is intensifying, with major players like Pizza Hut and local brands also focusing on lower-tier markets and value-driven strategies [15][20] - Pizza Hut has reduced prices on several products, resulting in a 13% drop in average transaction value to 76 yuan, while expanding its presence in lower-tier cities [15][17] - The overall pizza market in China is projected to exceed 500 billion yuan by 2025, with over 40,000 pizza outlets nationwide, indicating a growing and competitive environment [14][15]

Core Viewpoint - In Q3 2025, Dashishi Holdings (01405) demonstrated strong performance driven by store expansion, innovation, and digitalization strategies, achieving nearly 100% of its annual target for new store openings [1] Group 1: Store Expansion - The company continued its "broad and deep" store network expansion strategy, operating 1,283 stores across 51 cities in mainland China as of September 30, with a net addition of 275 stores in the quarter [1] - The company achieved its annual target of approximately 300 new store openings [1] Group 2: Sales Performance - New store performance was notable, with the first store in Handan generating sales of over 6.8 million yuan in its first month, ranking among the top five globally [1] - The first store in Xuzhou achieved a single-day sales record exceeding 680,000 yuan, setting a new global record [1] - Same-store sales in first-tier cities experienced positive growth [1] Group 3: Operational Efficiency - Dashishi Holdings ranked 49 out of the top 50 in the sales performance of Domino's stores globally within the first 30 days of operation [1] Group 4: Digitalization and Membership Growth - The membership program "Darenhui" expanded to 32.9 million members, with approximately 14.4 million new first-time customers added in the past 12 months [1] Group 5: Awards and Market Position - The company has won the Domino's Global Gold Franny Award for seven consecutive years and the International Cornerstone Award for six consecutive years [1] - According to Frost & Sullivan, Domino's Pizza has secured the second position in the Chinese pizza market based on sales in 2024 [1] Group 6: Future Strategy - The company plans to continue its "4D" strategy, focusing on store development, quality-price ratio products, efficient delivery, and digital capabilities to maintain its market leadership [1]

Core Insights - In Q3 2025, Dashih Holdings (01405) demonstrated strong performance driven by store expansion, innovation, and digitalization strategies [1] Store Expansion - The company has been actively pursuing a "broad and deep" store network expansion strategy, operating 1,283 stores across 51 cities in mainland China as of September 30, achieving a net addition of 275 stores in the quarter [1] - The annual target of opening 300 new stores has been nearly fulfilled [1] Sales Performance - Same-store sales in first-tier cities have shown positive growth [1] - Notable new store performances include the first store in Handan achieving sales of over 6.8 million yuan in its first month, ranking among the top five globally [1] - The first store in Xuzhou recorded a single-day sales exceeding 680,000 yuan, setting a new global record [1] Operational Efficiency - Dashih Holdings has achieved high operational efficiency, with 49 out of the top 50 sales in the first 30 days of operation among over 21,500 Domino's stores globally being from Domino's China [1] Digitalization and Membership Growth - The digitalization efforts have yielded significant results, with the membership program "Darenhui" expanding to 32.9 million members, adding approximately 14.4 million new first-time customers in the past 12 months [1] Awards and Market Position - The company has received the Gold Franny award from Domino's for seven consecutive years and the International Cornerstone Award for six consecutive years [1] - According to Frost & Sullivan, Domino's Pizza ranks second in the Chinese pizza market based on sales in 2024 [1] Future Strategy - The company plans to continue implementing its "4D" strategy, focusing on store development, quality-price ratio products, efficient delivery, and digital capabilities to maintain its market leadership [1]

本月底法定/註冊股本總額： USD 500,000,000 FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01405 | 說明 | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 130,936,013 | | 0 | | 130,936,013 | | 增加 / 減少 (-) | | | 32,724 | | 0 | | | | 本月底結存 | | | 130,968,737 | | 0 | | 130,968,737 | 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2025年9月30日 | | | | 狀態: 新提交 | | --- | --- | --- | ...

Core Viewpoint - The report from Tianfeng Securities highlights that Dashih Holdings (01405) is a leading player in the pizza sector with strong growth potential, expecting continuous expansion in the Chinese market, improved profitability through store expansion, cost reduction, and headquarters expense dilution [1] Financial Performance - For the first half of 2025 (25H1), the company reported revenue of 2.59 billion yuan, a year-on-year increase of 27.0%, and operating profit at the store level of 380 million yuan, up 28.0% year-on-year [1] - The adjusted net profit for 25H1 was 90 million yuan, reflecting a significant year-on-year growth of 79.6%, with an adjusted net profit margin of 3.5%, up 1.0 percentage points compared to 24H1 [1] Store Expansion and Operations - As of the end of 25H1, the total number of stores reached 1,198, marking a year-on-year growth of 31.1%, with a net addition of 190 stores in 25H1 [2] - The company aims to achieve a target of 300 new stores by 2025, with 43 additional stores opened by August 15, 2025, and 27 more under construction [2] - In terms of same-store sales, there was a decline of 1.0% in 25H1, primarily due to high base effects from strong sales in newly entered markets after December 2022 [2] Revenue by Market - In 25H1, revenue from first-tier cities was 1.08 billion yuan, a year-on-year increase of 7.2%, while revenue from non-first-tier cities reached 1.51 billion yuan, up 46.6%, contributing to 58.2% of total revenue, an increase of 8 percentage points year-on-year [2] Membership Growth - By the end of 25H1, the number of members reached 30.1 million, a year-on-year increase of 55%, with membership contributing to 66.0% of total revenue, up 2.4 percentage points [3] Cost Management - The raw material cost ratio remained stable at 27.3%, while the overall employee compensation expense ratio decreased by 1.1 percentage points to 33.8% [4] - The rental expense ratio was 10.0%, depreciation expense ratio was 4.8%, and advertising and promotion expense ratio was 5.3%, all maintaining relative stability year-on-year [4]

Core Viewpoint - The report from Tianfeng Securities indicates that Dashih Holdings (01405) is a leading player in the pizza sector with strong growth potential, expected to continue expanding in the Chinese market, supported by store expansion, cost reduction, and improved profitability through overhead cost dilution [1] Financial Performance - In the first half of 2025 (25H1), the company reported revenue of 2.59 billion yuan, a year-on-year increase of 27.0%, with operating profit at 380 million yuan, up 28.0% year-on-year, and an operating profit margin of 14.6%, which is an increase of 0.1 percentage points compared to 24H1 and 0.2 percentage points compared to 24H2 [1] - Adjusted net profit for 25H1 was 90 million yuan, representing a year-on-year growth of 79.6%, with an adjusted net profit margin of 3.5%, up 1.0 percentage points year-on-year and stable compared to 24H2 [1] Store Expansion and Operations - The company aims to achieve a store opening target of approximately 98% for the year, with a total of 1,198 stores by the end of 25H1, a year-on-year increase of 31.1%, and a net addition of 190 stores in 25H1 [2] - By August 15, an additional 43 stores were opened, with 27 under construction and 35 signed, aiming for a total of 300 new stores by 2025 [2] - In 25H1, same-store sales declined by 1.0%, primarily due to high base effects from strong sales in newly entered markets after December 2022, while first-tier cities maintained positive same-store growth [2] Revenue by Market - In 25H1, revenue from first-tier markets was 1.08 billion yuan, a year-on-year increase of 7.2%, while revenue from non-first-tier markets reached 1.51 billion yuan, up 46.6%, with the revenue share increasing to 58.2%, an 8 percentage point increase year-on-year, driven by store expansion and strong performance of new stores in newly entered markets [2] Membership Growth - By the end of 25H1, the number of members reached 30.1 million, a year-on-year increase of 55%, with membership contributing to 66.0% of total revenue, up 2.4 percentage points year-on-year [3] Cost Management - In 25H1, the raw material cost ratio was 27.3%, stable year-on-year, while overall employee compensation expense ratio decreased by 1.1 percentage points to 33.8% [4] - Store-level employee cash compensation ratio increased by 0.3 percentage points to 27.7%, due to increased staffing for new market entries, while headquarters employee cash compensation ratio decreased by 0.4 percentage points to 5.1% due to economies of scale [4]

Core Viewpoint - The company reported strong growth in revenue and adjusted net profit for the first half of 2025, indicating robust operational performance and effective cost management strategies [1][2][3] Financial Performance - Revenue for 25H1 reached 2.59 billion yuan, a year-on-year increase of 27.0% - Operating profit at the store level was 380 million yuan, up 28.0% year-on-year, with an operating profit margin of 14.6%, an increase of 0.1 percentage points from 24H1 and 0.2 percentage points from 24H2 - Adjusted net profit was 90 million yuan, a significant year-on-year increase of 79.6%, with an adjusted net profit margin of 3.5%, up 1.0 percentage points from 24H1 and stable compared to 24H2 [1][2] Store Expansion and Operations - The company aims to achieve approximately 98% of its annual store opening target, with a total of 1,198 stores by the end of 25H1, representing a 31.1% year-on-year increase - In 25H1, the company opened 190 new stores, with an additional 43 stores opened by August 15, and 27 stores under construction, aiming for a total of 300 stores by 2025 - By the end of 25H1, the company had entered 48 cities, with 9 new cities added in 25H1 [1][2] Same-Store Sales and Membership - Same-store sales declined by 1.0% in 25H1, primarily due to high base effects from new market stores opened after December 2022 - Revenue from first-tier markets was 1.08 billion yuan, a year-on-year increase of 7.2%, while revenue from non-first-tier markets reached 1.51 billion yuan, up 46.6%, accounting for 58.2% of total revenue, an increase of 8 percentage points year-on-year - Membership numbers reached 30.1 million by the end of 25H1, a 55% year-on-year increase, with membership contributing 66.0% of total revenue, up 2.4 percentage points [2][3] Cost Management - Raw material cost ratio remained stable at 27.3%, while overall employee compensation expense ratio decreased by 1.1 percentage points to 33.8% - Store-level employee cash compensation ratio increased by 0.3 percentage points to 27.7%, while headquarters employee cash compensation ratio decreased by 0.4 percentage points to 5.1% - Rent expense ratio was 10.0%, depreciation expense ratio was 4.8%, and advertising and promotion expense ratio was 5.3%, all remaining relatively stable year-on-year [2]