Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is in a store expansion phase, with strong revenue and profit potential. The scale effect is gradually becoming evident, and cost reduction and efficiency improvement efforts are ongoing. The company plans to open 300 and 350 new stores in 2025 and 2026, respectively, with a target of approximately 3,000 stores by 2029-2030 [7] - The company has a strong brand and product offering, with over 21,000 global stores as of Q3 2024, leading in both store count and sales, achieving the highest market share globally. The product's convenience aligns with urban consumer trends, and the diverse menu caters to various price points [7] - The membership system is maturing, with 27 million members as of Q1 2025, enhancing customer loyalty and repeat purchase rates [7] - Revenue and profit forecasts have been adjusted to reflect strong growth, with projected revenues of 56.79 billion, 73.27 billion, and 90.51 billion yuan for 2025-2027, representing year-on-year growth rates of 31.64%, 29.01%, and 23.53%, respectively. Net profit is expected to reach 0.95 billion, 1.50 billion, and 2.39 billion yuan for the same period, with growth rates of 71.97%, 57.76%, and 59.29% [7] Financial Summary - Total revenue is projected to be 4,314 million yuan in 2024, increasing to 5,679 million yuan in 2025, and reaching 7,327 million yuan in 2026 [8] - The net profit for 2024 is expected to be 55.20 million yuan, growing to 94.92 million yuan in 2025, and 149.75 million yuan in 2026 [8] - The company’s earnings per share (EPS) is forecasted to be 0.42 yuan in 2024, increasing to 0.73 yuan in 2025, and 1.14 yuan in 2026 [8]

Core Insights - In 2024, Dashi Co. (Domino's China) reported significant revenue and profit growth, solidifying its leading position in the pizza market despite overall industry challenges [1][6]. Financial Performance - Total revenue for 2024 reached 4.314 billion yuan, a 41.4% increase from 3.051 billion yuan in 2023 [2]. - The new growth markets contributed 2.665 billion yuan, a staggering 77% increase, raising their share of total revenue from 49.4% to 61.8% [2]. - Net profit attributable to shareholders was 55.2 million yuan, with adjusted net profit soaring from 8.8 million yuan in 2023 to 131 million yuan, marking a 1394.2% increase [2]. Cost Management and Profitability - Despite rising costs in raw materials (up 39.8% to 1.17 billion yuan), rent (up 39.2% to 428 million yuan), and employee compensation (up 28.1% to 1.509 billion yuan), the company improved its EBITDA margin from 18.9% to 19.3% [3]. - Adjusted EBITDA grew by 64.1% to 495 million yuan, showcasing enhanced operational efficiency through centralized kitchen delivery and digital order management [3]. Expansion Strategy - Dashi Co. opened 240 new stores in 2024, bringing the total to 1,008 across 39 cities, with plans to open an additional 300 stores in 2025 [4]. - The company focuses on low-tier cities with a "small store model" averaging 130 square meters to reduce costs while ensuring product quality through centralized kitchens [4]. Market Position and Innovation - The company has maintained 30 consecutive quarters of same-store sales growth, with a same-store sales growth rate of 3.6% in 2024 [4]. - Product innovation includes localized offerings like "volcano" crust and shrimp-flavored pizzas, catering to diverse consumer preferences [5]. - Membership growth from 14.6 million to 24.5 million, with membership revenue contribution rising to 64.5%, indicates strong customer retention [3][5]. Future Outlook - The Chinese pizza market is projected to reach 77.1 billion yuan by 2027, providing ample growth opportunities for Dashi Co. [5]. - Recent target price adjustments by analysts reflect confidence in the company's long-term value, with a target price of 118.57 HKD [5].

Financial Performance - The company achieved a revenue of RMB 4.31 billion in 2024, maintaining a record of positive same-store sales growth for 30 consecutive quarters[10]. - Total revenue for the fiscal year ended December 31, 2024, was RMB 4,314.1 million, an increase of 41.4% compared to RMB 3,050.7 million in 2023[22]. - The adjusted net profit for 2024 was RMB 1.312 billion, marking the first year of positive after-tax reported net profit[10]. - The adjusted net profit for the fiscal year was RMB 131.2 million, a significant increase of 1,394.2% from RMB 8.8 million in 2023[22]. - Net profit for FY2024 was RMB 55.2 million, compared to a net loss of RMB 26.6 million in FY2023[52]. - The adjusted EBITDA for 2024 was RMB 495.16 million, up from RMB 301.74 million in 2023, reflecting a growth of 64.2%[59]. - The adjusted EBITDA margin improved to 11.5% in 2024, compared to 9.9% in 2023[59]. - Store-level EBITDA reached RMB 831.37 million in 2024, an increase from RMB 576.62 million in 2023, representing a growth of 44.1%[61]. - The store-level EBITDA margin was 19.3% in 2024, slightly up from 18.9% in 2023[61]. Store Expansion - A total of 240 new stores were opened in 2024, bringing the total to 1,008 stores across 39 cities by December 31, 2024[11]. - The company plans to open approximately 300 new stores in 2025, with 82 already opened and 26 under construction as of March 14, 2025[13]. - The number of cities entered increased to 39 as of December 31, 2024, up from 29 in the previous year[18]. - The company opened 240 new stores during the reporting period, bringing the total to 1,008 stores by the end of the year, with 371 located in Shanghai and Beijing, and 637 in new growth markets[24]. Membership Growth - The membership program grew from 14.6 million at the end of 2023 to 24.5 million by December 31, 2024, adding nearly 10 million new members in one year[12]. - Membership numbers grew to 24.5 million, up from 19.4 million in the previous year[20]. - Membership increased from 14.6 million as of December 31, 2023, to 24.5 million as of December 31, 2024, with member contributions to total revenue rising from 59.2% to 64.5%[27]. Operational Efficiency - The average payback period for the 80 new stores opened in 18 new cities from December 2023 to December 2024 was within 12 months[11]. - Same-store sales growth for the fiscal year was 2.5%, compared to 8.9% in the previous year[19]. - EBITDA at the store level reached RMB 831.4 million, up 44.2% from RMB 576.6 million in the previous year[22]. - The EBITDA margin at the store level improved to 19.3%, an increase of 0.4 percentage points from 18.9%[22]. - The operating profit margin at the store level improved to 14.5%, an increase of 0.7 percentage points from 13.8%[22]. Cost Management - Raw material and supply costs increased by 39.8% to RMB 1,169.8 million, but the percentage of these costs to revenue decreased from 27.4% to 27.1%[36]. - Employee compensation expenses rose by 28.1% to RMB 1,509.5 million, compared to RMB 1,178.7 million in the fiscal year 2023[38]. - Rent expenses rose to RMB 428.2 million in FY2024, a 39.2% increase from RMB 307.7 million in FY2023, while rent expenses as a percentage of revenue decreased from 10.1% to 9.9%[41]. - Utilities expenses rose to RMB 164.1 million in FY2024, a 42.9% increase from RMB 114.8 million in FY2023, with utilities expenses as a percentage of revenue remaining stable[44]. - Advertising and promotion expenses increased to RMB 217.6 million in FY2024, a 36.7% increase from RMB 159.2 million in FY2023, while the percentage of total revenue decreased from 5.2% to 5.0%[46]. Employee Growth - As of December 31, 2024, the total number of full-time employees is 9,160, an increase of 40.0% from 6,536 on December 31, 2023[75]. - The total employee cost for the fiscal year 2024 is RMB 1,509.5 million, up from RMB 1,178.7 million in 2023, representing a year-over-year increase of 28.1%[76]. - The company has 19,640 part-time employees as of December 31, 2024, compared to 15,635 on December 31, 2023, indicating a growth of 25.0%[75]. Awards and Recognition - The company received several awards in 2024, including the Best Digitalization Award and the title of Best Employer from Mercer[12]. - The company received the "2024 Best Employer" award from Mercer, marking the third consecutive year of this recognition[77]. Corporate Governance - The board did not recommend the distribution of a final dividend for the 2024 fiscal year, similar to 2023[101]. - The company has no pledged assets or contingent liabilities as of December 31, 2024[72][73]. - The company has not entered into any derivative instruments to hedge foreign exchange risks but will monitor the situation closely[74]. - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the fiscal year 2024[71]. Future Plans and Investments - The company has not made or held any significant investments during the fiscal year 2024[70]. - The company has no significant future investment or capital asset plans beyond what is disclosed in the management discussion and analysis section[80]. - The expected timeline for utilizing the net proceeds for store expansion has been extended from the end of 2025 to the end of 2026[191]. Social Responsibility - The company is committed to social responsibility, employee welfare, environmental protection, and community contributions[197]. - The company made charitable donations in the form of food, amounting to approximately RMB 22,300 during the reporting period[198]. - There are no significant lawsuits or claims threatening the company or its subsidiaries as of December 31, 2024[199]. - The company has complied with all relevant laws and regulations without any significant violations during the reporting period[200].

Summary of DTC Dash Limited Full Year 2024 Earnings Conference Call Company Overview - **Company**: DTC Dash Limited - **Industry**: Fast Food / Pizza Franchise - **Franchisee**: Exclusive master franchisee of Domino's Pizza in mainland China, Hong Kong, and Macau - **Global Franchisor**: Domino's Pizza Inc. with over 21,300 stores in more than 90 markets as of December 31, 2024 [2][3] Key Financial Highlights - **Total Revenues**: RMB 4.3 billion, a 41.4% increase from RMB 3.1 billion in 2023 [3][8] - **Average Daily Sales per Store**: Increased by 4.3% to RMB 13,126 from RMB 12,580 in 2023 [3][8] - **Same-Store Sales Growth (SSG)**: Achieved 2.5% in 2024, following 8.9% in 2023, marking the 30th consecutive quarter of positive sales [3][4] - **Store Network Expansion**: Expanded to 1,008 stores with a net addition of 240 stores in 2024 [3][4] - **Store-Level Operating Profit Margin**: Increased to 14.5% from 13.8% in 2023, with store-level operating profit reaching RMB 624 million, a 48.7% increase [4][12] - **Adjusted EBITDA**: Rose to RMB 495.2 million, a 64.1% increase from RMB 301.7 million in 2023 [4][12] - **Adjusted Net Profit**: Reached RMB 131.2 million, up from RMB 8.8 million in 2023 [4][12] - **Reported Net Profit**: Positive at RMB 55.2 million compared to a net loss of RMB 26.6 million in 2023 [4][12] Strategic Insights - **4D Strategy**: Focus on Development, Delicious Pizza Value, Delivery, and Digital [3][4] - **Expansion Strategy**: Balanced approach of deepening presence in existing markets while entering new cities; entered six new cities in January 2025 [4][5] - **Revenue Mix**: New growth markets contributed 61.8% of total revenue, up from 49.4% in 2023, with revenue from these markets increasing by 77% [5][6] - **Menu Development**: Introduced over 30 pizza varieties and approximately 20 crust options, with pizza products accounting for more than 75% of total sales [6][7] Operational Highlights - **Delivery Services**: Delivery percentage decreased from 59.2% in 2023 to 46.1% in 2024 due to high dine-in and carry-out volumes in new markets [6][7] - **Loyalty Program**: Membership increased from 14.6 million to 24.5 million, with revenue from loyalty members growing from 59.2% to 64.5% of total sales [7][8] - **Capital Expenditure**: Anticipated at approximately RMB 570 million for 2025, funded through existing cash reserves [7][8] Market Position and Competition - **Market Ranking**: Ranked second nationally in China based on 2024 pizza sales [3][4] - **Competitive Landscape**: Addressing competition from Pizza Hut and other QSR brands by focusing on product quality and service rather than solely on pricing [19][20] Future Outlook - **Store Opening Plans**: Plans to open about 300 stores in 2025, with a focus on operational excellence and service quality [7][8] - **Market Dynamics**: The company remains confident in its business model despite global uncertainties, aiming for sustainable growth and long-term shareholder value [7][8] Additional Insights - **Cost Management**: Raw materials and consumables cost increased by 39.8%, but the ratio to revenue improved from 27.4% in 2023 to 27.1% in 2024 [9][10] - **Staff Compensation**: Total staff compensation expenses increased by 28.1% to RMB 1.51 billion, with a focus on hiring for new store openings [10][11] This summary encapsulates the key points from the earnings call, highlighting the company's performance, strategic initiatives, and future outlook in the competitive fast-food industry.

Investment Rating - The investment rating for the company is "Accumulate" [7] Core Views - The company achieved a revenue of 4.314 billion yuan in 2024, representing a year-on-year growth of 41.4%, with a significant increase in net profit [1][5] - The company continues to expand its store network, adding 240 new stores in 2024, and has maintained positive same-store sales growth for 30 consecutive quarters since Q3 2017 [1][4] - The company is expected to maintain a strong average daily sales level, with a projected opening of around 300 new stores in 2025, primarily in new growth markets [4] Revenue and Profitability - In 2024, the company achieved a gross margin of 72.9%, an improvement of 0.3 percentage points year-on-year, and an adjusted net profit margin of 3.0%, reflecting its profitability potential [2] - The average daily sales per store reached 13,100 yuan in 2024, a year-on-year increase of 4.3%, driven mainly by new store openings [3] Financial Forecast - The company is projected to achieve revenues of 5.394 billion yuan, 6.521 billion yuan, and 8.160 billion yuan for the years 2025, 2026, and 2027, respectively, with net profits expected to reach 0.76 billion yuan, 1.03 billion yuan, and 2.79 billion yuan in the same years [6][5]

Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company reported a revenue of 4.314 billion yuan in 2024, representing a year-on-year growth of 41% [4] - The gross margin improved to 72.9%, an increase of 0.3 percentage points year-on-year [6] - Adjusted net profit reached 131 million yuan, with an adjusted net profit margin of 3.0%, up by 2.7 percentage points year-on-year [6] - Adjusted EBITDA was 500 million yuan, showing a year-on-year increase of 64%, with an EBITDA margin of 11.5%, up by 1.6 percentage points [6] Summary of Relevant Sections Market Performance - The company's stock showed an absolute increase of 31.59% over the last three months [3] Store Performance - Same-store sales grew by 2.5% for the year, marking 30 consecutive quarters of positive growth [5] - The average daily sales per store were 13,100 yuan, a 4% increase year-on-year, with a decline in average transaction value by 5% [5] - The total number of stores reached 1,008 by the end of 2024, with a net addition of 240 stores during the year [5] Profitability and Cost Management - The operating profit margin for the company was 14.5%, an increase of 0.7 percentage points year-on-year [6] - Employee costs accounted for 27.5% of revenue, up by 0.6 percentage points due to the expansion of new market stores [6] Valuation Forecast - Revenue estimates for 2025 and 2026 have been raised to 5.437 billion yuan and 7.033 billion yuan, respectively, with year-on-year growth rates of 26% and 29% [7] - The adjusted net profit for 2025 is projected to be 188 million yuan, reflecting a 43.6% year-on-year increase [7] - The company is assigned a price-to-sales (PS) valuation of 2.5-3 times for 2025, resulting in a fair value range of 111.2 to 133.5 HKD per share [7]

| 主要摘要 | | | | | --- | --- | --- | --- | | | | 截至12月31日止年度 | | | | | | 變動(%)。 | | | 2024年 | 2023年 | 百分點變動 | | | (人民幣千元)(人民幣千元) | | | | 收益 | 4,314,093 | 3.050.715 | 41.4% | | 門店層面的經營利潤(1) | 624,006 | 419.732 | 48.7% | | 門店層面的經營利潤率(2) | 14.5% | 13.8% | +0.7 | | 除所得税前利潤 | 99,605 | 2.275 | 4.278.2% | | 本公司擁有人應佔年內利潤／(虧損) | 55.195 | (26.603) | 不適用 | | 每股基本利潤／(虧損)(人民幣元) | 0.42 | (0.22) | 不滴用 | | 每股攤薄利潤／(虧損)(人民幣元) | 0.42 | (0.22) | 不滴用 | | 非國際財務報告準則計量 | | | | | 門店層面EBITDA(3) | 831,366 | 576.622 | 44.2% | | 門店層面EBIT ...

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - The company achieved a revenue of 4.314 billion yuan in 2024, representing a year-on-year growth of 41.41%, and a net profit of 55.20 million yuan, marking a turnaround from a loss [7] - The company is expanding its store network, with a total of 1,008 stores by the end of 2024, an increase of 240 stores or 31.25% year-on-year [7] - The new growth markets are showing strong momentum, contributing to 61.76% of total revenue, up 12.41 percentage points year-on-year [7] - The company plans to open approximately 300 new stores in 2025, with 82 already opened by mid-March 2025 [7] Financial Summary - Revenue projections for 2025-2027 are 55.44 billion yuan, 70.13 billion yuan, and 87.41 billion yuan, with year-on-year growth rates of 28.52%, 26.48%, and 24.65% respectively [1][7] - Net profit forecasts for the same period are 132.55 million yuan, 241.18 million yuan, and 416.12 million yuan, with growth rates of 140.15%, 81.95%, and 72.54% respectively [1][7] - The company's gross margin is expected to improve, with a projected gross margin of 72.9% in 2024 [7]

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Insights - The company achieved a revenue of 4.314 billion yuan in 2024, representing a year-on-year growth of 41.41%, and a net profit of 55.20 million yuan, marking a turnaround from a loss [7] - The company is expanding its store network, with a significant increase in new growth markets, which contributed to a revenue share increase of 12.41 percentage points to 61.76% [7] - The company plans to open approximately 300 new stores in 2025, with 82 already opened by mid-March 2025, indicating strong growth momentum [7] Revenue and Profit Forecast - Revenue is projected to grow from 55.44 billion yuan in 2025 to 87.41 billion yuan in 2027, with year-on-year growth rates of 28.52%, 26.48%, and 24.65% respectively [7] - Net profit is expected to increase significantly, from 132.55 million yuan in 2025 to 416.12 million yuan in 2027, with growth rates of 140.15%, 81.95%, and 72.54% respectively [7] Financial Metrics - The company’s earnings per share (EPS) is forecasted to rise from 1.01 yuan in 2025 to 3.18 yuan in 2027 [7] - The price-to-earnings (P/E) ratio is projected to decrease from 94.05 in 2025 to 29.96 in 2027, indicating improving valuation as earnings grow [7]

Investment Rating - The investment rating for the company is "Buy" [2][8] Core Insights - The company is experiencing strong brand momentum, maintaining high growth in store openings, and continuously optimizing profitability [3][8] - The 2024 performance slightly exceeded expectations, with adjusted net profit forecasts for 2025 and 2026 raised to 185 million and 278 million RMB respectively, and a new forecast for 2027 set at 368 million RMB [8] Financial Summary - Revenue for 2024 is projected at 4.314 billion RMB, representing a year-on-year increase of 41.4% [7][8] - The operating profit from stores is expected to reach 624 million RMB, with a year-on-year growth of 48.7% and a store operating profit margin of 14.5%, up 0.7 percentage points [8] - The adjusted net profit for 2024 is forecasted at 1.31 billion RMB, a significant increase of 1394.2% year-on-year, with an adjusted net profit margin of 3.04%, up 2.75 percentage points [8] - The company plans to open approximately 300 new stores in 2025, with a capital expenditure of about 570 million RMB [8] Store Expansion and Sales Performance - The total number of stores is expected to reach 1,008 by the end of 2024, reflecting a year-on-year increase of 31.25% [8] - Same-store sales growth for 2024 is projected at 2.5%, with a daily average sales per store of 13,100 RMB, an increase of 4.3% year-on-year [8] - The average payback period for new stores opened in 2024 is estimated at 12 months [8] Profitability and Cost Structure - The gross profit margin for 2024 is expected to be 72.88%, an increase of 0.31 percentage points year-on-year [8] - Employee costs as a percentage of revenue decreased to 34.99%, down 3.65 percentage points year-on-year [8] - Advertising and promotion expenses accounted for 5.04% of revenue, a decrease of 0.17 percentage points year-on-year [8]