Investment Rating - The report maintains an "Outperform" rating for DPC Dash [2][6][13] Core Views - DPC Dash reported a revenue of RMB 4.31 billion for 2024, representing a year-on-year increase of 41% [3][12] - The company achieved a same-store sales growth (SSSG) of 2.5%, marking 30 consecutive quarters of positive growth [4][12] - The gross profit margin (GPM) stood at 72.9%, up 0.3 percentage points year-on-year, while the operating profit margin (OPM) was 14.5%, an increase of 0.7 percentage points [5][12] - Adjusted net profit reached RMB 131 million, with an adjusted net profit margin of 3.0%, up 2.7 percentage points year-on-year [5][12] Financial Performance Summary - Revenue projections for 2025-2027 are RMB 5.44 billion, RMB 7.03 billion, and RMB 8.78 billion, respectively, with year-on-year growth rates of 26%, 29%, and 25% [6][11] - Adjusted net profit forecasts for the same period are RMB 188 million, RMB 340 million, and RMB 492 million, with growth rates of 44%, 80%, and 45% respectively [6][11] - The company plans to open 300 new stores in 2025, following a net addition of 240 stores in 2024, bringing the total to 1,008 stores [4][12] Valuation and Target Price - The target price is set at HKD 125.9, reflecting a valuation of 2.5-3 times the price-to-sales (PS) ratio for 2025 [2][6][13] - The current market capitalization is approximately HKD 14.95 billion (USD 1.92 billion) [2][6]

Investment Rating - The report maintains an "Outperform" rating for DPC Dash [2][6][13] Core Views - DPC Dash reported a revenue of RMB 4.31 billion for 2024, representing a 41% year-on-year increase, with a gross profit margin of 72.9% [3][12] - The company achieved a same-store sales growth (SSSG) of 2.5%, marking 30 consecutive quarters of positive growth [4][12] - The adjusted net profit for 2024 was RMB 131 million, with an adjusted net profit margin of 3.0%, up 2.7 percentage points year-on-year [5][12] Financial Performance Summary - Revenue projections for 2025-2027 are RMB 5.44 billion, RMB 7.03 billion, and RMB 8.78 billion, respectively, with adjusted net profits of RMB 188 million, RMB 340 million, and RMB 492 million [6][11][13] - The company plans to open 300 new stores in 2025, following a net addition of 240 stores in 2024, bringing the total to 1,008 stores [4][12] - Membership program growth is notable, with a total of 24.5 million members by the end of 2024, contributing 64.5% to revenue [4][12] Valuation and Target Price - The target price is set at HKD 125.9, reflecting a valuation of 2.5-3 times the price-to-sales ratio for 2025 [2][6][13] - The report indicates a significant increase in target price from a previous estimate of HKD 79.4, highlighting the company's strong growth potential [6][13]

Core Viewpoint - The restaurant industry has faced significant challenges over the past year, including product homogenization, price wars, and rising costs, leading to a sustained pressure on performance. However, Dashijia (01405), the exclusive franchisee of Domino's Pizza in mainland China, Hong Kong, and Macau, has successfully turned around its performance in FY2024, demonstrating resilience amid market turmoil [1][3]. Industry Overview - In 2024, China's total restaurant revenue is projected to reach 55,718 billion RMB, reflecting a growth of 5.3%, which is the lowest growth rate in the past decade excluding the pandemic impact. The number of restaurant openings and closures has both increased, with closures rising to 4.09 million and a closure rate of 61.2%, indicating intensified market competition [1]. Company Performance - Dashijia reported a significant turnaround in its financial performance for FY2024, achieving a revenue growth of 41.4% to 4.314 billion RMB and a net profit of 131.6 million RMB, marking a staggering year-on-year growth of 1,394.2%. The adjusted EBITDA also increased by 64.1% to 495.2 million RMB, with an EBITDA margin of 11.5% [3][4]. - The company has successfully expanded its store network, reaching a milestone of 1,008 stores across 39 cities in mainland China, with a net addition of 240 new stores in 2024. The new market revenue grew by 77.0% to 2.665 billion RMB, while existing market revenue increased by 6.8% to 1.650 billion RMB [6][7]. Market Position and Brand Strength - Dashijia has established itself as a leading brand in the pizza delivery market, ranking third in terms of store count within the Domino's global network and second in China's pizza sales. The company has maintained a strong brand presence through innovative product offerings and effective marketing strategies [8][9]. - The company has introduced over 100 new products since 2018, including regionally inspired pizzas, enhancing brand recognition and customer loyalty. The number of loyal members increased by 67.8% to 24.5 million, contributing to 64.5% of total revenue [9][10]. Future Outlook - The company is in a growth phase, with significant potential in lower-tier cities where pizza penetration remains low. The ongoing expansion and operational efficiency are expected to drive further revenue growth and enhance market valuation [11].

Group 1 - The company achieved revenue of 4.314 billion RMB for the year ending December 31, 2024, representing a year-on-year increase of 41.4% [1] - The profit attributable to the owners of the company was 55.195 million RMB, a turnaround from a loss of 26.603 million RMB in the same period last year [1] - The company reported a basic earnings per share of 0.42 RMB [1] Group 2 - The company expanded its store network by adding 240 new stores during the year, resulting in a total of 1,008 stores in 39 cities in mainland China [1] - The company has achieved positive same-store sales growth for 30 consecutive quarters since Q3 2017 [1] - Membership increased from 14.6 million as of December 31, 2023, to 24.5 million as of December 31, 2024, with membership revenue contributing 64.5% of total revenue [2] Group 3 - The company plans to open approximately 300 new stores in 2025, with 82 already opened from the beginning of 2025 to March 14, 2025, and 26 more under construction [2] - A total of 62 new stores have already been signed for future openings, indicating strong growth prospects [2]

Financial Performance - 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 the fiscal year 2023[5] - The company reported a profit attributable to owners of RMB 55.2 million, reversing a loss of RMB 26.6 million in the previous year[5] - Adjusted net profit for fiscal year 2024 was RMB 131.16 million, significantly up from RMB 8.78 million in fiscal year 2023[45] - The company recorded a net profit of RMB 55.2 million for the fiscal year 2024, compared to a net loss of RMB 26.6 million in fiscal year 2023[39] - Basic earnings per share improved to RMB 0.42 in 2024, compared to a loss of RMB (0.22) in 2023[10] Store Expansion and Operations - The number of stores increased to 1,008, with a net addition of 240 new stores during the year, marking a significant expansion in the store network[10] - The company operated 1,008 stores across 39 cities in mainland China as of December 31, 2024[9] - The company plans to open approximately 300 new stores in 2025, with total capital expenditure estimated at RMB 570 million[16] - The average daily sales per store increased from RMB 12,580 in fiscal year 2023 to RMB 13,126 in fiscal year 2024, a rise of 4.3%[18] Membership and Customer Growth - The number of members reached 24.5 million, up from 19.4 million in June 2024 and 14.6 million in December 2023[8] - Membership increased from 14.6 million to 24.5 million, with member contributions to total revenue rising from 59.2% to 64.5%[14] Profitability Metrics - Adjusted EBITDA for the year was RMB 495.2 million, a 64.1% increase from RMB 301.7 million in the previous year[5] - Store-level EBITDA for fiscal year 2024 was RMB 831.37 million, up from RMB 576.62 million in fiscal year 2023, with a store-level EBITDA margin of 19.3% compared to 18.9%[45] - The EBITDA margin at the store level improved to 19.3%, up from 18.9% in the previous year[5] Revenue Sources - Revenue from new growth markets surged by 77.0% from RMB 1,505.6 million in 2023 to RMB 2,664.5 million in 2024, contributing 61.8% to total revenue[11] - Total revenue increased from RMB 3,050.7 million in the fiscal year 2023 to RMB 4,314.1 million in the fiscal year 2024, representing a growth of 41.4%[18] Cost and Expenses - The group's raw material and consumable costs for the fiscal year 2024 amounted to RMB 1,169.8 million, an increase of RMB 333.0 million or 39.8% compared to RMB 836.8 million in fiscal year 2023[24] - Employee compensation expenses reached RMB 1,509.5 million in fiscal year 2024, up RMB 330.8 million or 28.1% from RMB 1,178.7 million in fiscal year 2023[25] - Rent expenses increased to RMB 428.2 million in fiscal year 2024, a rise of RMB 120.5 million or 39.2% from RMB 307.7 million in fiscal year 2023, while the percentage of rent expenses to total revenue decreased from 10.1% to 9.9%[29] - Utilities expenses increased to RMB 164.1 million in fiscal year 2024, up RMB 49.3 million or 42.9% from RMB 114.8 million in fiscal year 2023[32] Financial Position - Cash and bank balances increased by 4.9% to RMB 1,069.3 million as of December 31, 2024, from RMB 1,019.2 million as of December 31, 2023[47] - Current assets totaled RMB 1,368.6 million as of December 31, 2024, while current liabilities were RMB 1,517.0 million, resulting in a current ratio of 0.9, down from 1.19 in the previous year[48] - The company's debt amounted to RMB 200.0 million as of December 31, 2024, unchanged from the previous year, with plans to repay RMB 100.0 million due on March 28, 2025[49] - The company's debt-to-equity ratio was approximately 8.9% as of December 31, 2024, a decrease from 9.5% as of December 31, 2023, due to improved profitability[51] Employee Statistics - The company employed 9,160 full-time employees as of December 31, 2024, up from 6,536 in 2023, representing an increase of about 40.0%[57] - The company had 19,640 part-time employees as of December 31, 2024, compared to 15,635 in 2023, indicating a growth of approximately 25.7%[57] - The total employee cost was RMB 1,509.5 million, an increase from RMB 1,178.7 million in 2023, reflecting a growth of approximately 28.1%[58] Corporate Governance and Future Plans - The company received the "2024 Best Employer" award from Mercer, marking the third consecutive year of this recognition[58] - The annual general meeting is scheduled for May 29, 2025, with a record date for voting eligibility on the same day[62] - The company has exclusive rights to develop and operate Domino's Pizza stores in mainland China, Hong Kong, and Macau until June 1, 2027, with potential extensions[82]

Investment Rating - The report gives a "Buy" rating for the company, with a target price of 98.5 HKD per share based on a 2.3x PS valuation for 2025 [6]. Core Insights - The company, as the exclusive franchisee of Domino's Pizza in mainland China, Hong Kong, and Macau, is entering a rapid store expansion phase with expected profitability improvements. In 2023, the company achieved a revenue of 3.05 billion CNY, with a CAGR of 38.2% from 2019 to 2023. By the end of 2024, the company is projected to have over 1,000 stores, significantly up from 100+ in 2017 [4][6]. - The domestic pizza industry is in a growth phase, with a market size of 37.5 billion CNY in 2022 and a CAGR of 7.8% from 2017 to 2022. The penetration rate in lower-tier markets remains low, indicating substantial expansion potential [4][6]. - The report highlights the successful growth strategies of Domino's in the U.S. and draws parallels to the company's potential in China, emphasizing the importance of operational efficiency, digital innovation, and a strong franchisee management system [4][6]. Summary by Sections 1. Company Overview - The company is the exclusive franchisee of Domino's Pizza in China, having undergone significant management changes and expansion since 2017. It has rapidly increased its store count from 268 in 2019 to 914 in the first half of 2024 [15][20]. 2. Market Potential - The Chinese pizza market is expected to grow significantly, with projections indicating a market size of 45.8 billion CNY in 2023 and 77.1 billion CNY by 2027, reflecting a CAGR of 15.5% [48]. 3. Financial Performance - The company has shown strong revenue growth, with a 2023 revenue of 3.05 billion CNY, and is expected to reach 4.26 billion CNY in 2024, representing a 39.6% year-on-year increase. The net profit is projected to turn positive in 2024, with a net profit margin of 2.5% in the first half of 2024 [6][35]. 4. Competitive Advantages - The company maintains a competitive edge through its commitment to service efficiency, with a 30-minute delivery guarantee, a high-quality product offering, and a robust supply chain management system [4][6]. 5. Management and Governance - The management team, led by CEO Wang Yi, has extensive experience in the fast-food industry, contributing to the company's strategic direction and operational efficiency [20][22]. 6. Future Outlook - The company is expected to double its store count in the next three years, with a revenue CAGR of over 30%. The anticipated financial performance includes revenues of 4.26 billion CNY in 2024, 5.22 billion CNY in 2025, and 6.37 billion CNY in 2026 [6][35].

Investment Rating - The report assigns a "Buy" rating to the company, with a target price of 87.69 HKD per share, reflecting a strong growth potential in the market [68][198]. Core Insights - The company is positioned as a pizza delivery expert, with a clear path for profitability improvement and significant store expansion potential. The target for new store openings is set at 300-350 per year for the next two years, with a projected total of around 3,000 stores by 2030, nearly three times the current number [54][191][198]. - The company has demonstrated strong brand momentum, achieving continuous same-store sales growth for 29 consecutive quarters, even in a challenging market environment [68][145]. - The delivery model is a key differentiator, with a commitment to delivering within 30 minutes, which enhances customer satisfaction and brand loyalty [96][232]. Summary by Sections Industry Overview - The pizza market in China is expected to grow from 45.8 billion RMB in 2023 to 77.1 billion RMB by 2027, with a CAGR of 13.9% [39][171]. - The chain penetration rate for the pizza industry is significantly higher than other dining sectors, with a current rate of 90.1% expected to rise to 93.1% by 2027 [18][39]. Company Profile - The company is the exclusive master franchisee for Domino's Pizza in mainland China, Hong Kong, and Macau, having opened 1,000 stores across 33 cities as of November 2024 [68][80]. - The management team is experienced, with a focus on local market strategies and a commitment to enhancing operational efficiency [81][106]. Competitive Advantages - The company has a robust supply chain and a diverse menu, offering 33 different pizza options with customizable toppings, which enhances customer appeal [124][154]. - The brand has a strong global presence, being the leading pizza brand worldwide, which supports its growth in the Chinese market [157]. Future Outlook - Revenue is projected to grow significantly, with estimates of 42.9 billion RMB in 2024, 53.0 billion RMB in 2025, and 63.8 billion RMB in 2026, reflecting a strong growth trajectory [171][173]. - The company is expected to improve its operating profit margin (OPM) due to increased sales and optimized cost structures, with a target OPM of 14.5% by 2024 [164][171].

销售与管理视频号开通啦 欢迎关注并留下您睿智犀利的评论吧 ----------------------------------------- - - 作者： 智先生 来源：智先生（ID：zhixs10） 要说2024年有什么天坑行业排行的话，餐饮业估计能名列前茅。 很多地区的"排队王"都陷入了摆烂的局面，客流量肉眼可见变得稀疏起来，预订率下降，导致营业额也大幅缩水。 有餐饮人在网上自嘲， "开店时身上有二十多万，关店时能去到四十多万，可惜是负债"。 数据是最直观的。 哪怕它们纾尊降贵，推出298、398的"平民套餐"，也依然挡不住大规模关停潮来袭，因为老百姓对米其林评价已经祛魅。 当行业环境不济时，大部分企业首先会考虑加入红海战场，开卷价格大战，虽然"以价换量"不是什么新鲜把戏了，但胜在有用。 一部分餐饮头部借此实现了逆增长，比如像海底捞，萨莉亚、瑞幸咖啡、百胜中国等佼佼者。 不过仔细翻看各上市公司的财报，可以发现一点，能实现同比增长的寥寥无几， 与其说逆增长，不如说维持营收平衡更贴切 。 根据国家统计局数据，今年1-8月份，餐饮收入34998亿元，同比增长6.6%，从大盘来看，还算可以，最起码像房地产、家装 ...

18 Oct 2024 Earnings Summary CMB International Global Markets | Equity Research | Company Update DPC Dash (1405 HK) Our view on placement by Domino's Pizza What is new? Sales of shares by the 2nd largest shareholder of DPC Dash (1405 HK). Domino's Pizza (DPZ US), the 2nd largest shareholder of DPC Dash (1405 HK), has sold 10mn shares (about 7.66% of total shares issued), at the price of HK$ 65.0 per share, with a 12.8% discount to last closing price of HK$ 74.55. After this trade, Domino's Pizza's ownership ...

Investment Rating - The report maintains a "Recommended" rating for the company with a target price of HKD 92.30, compared to the current price of HKD 69.00 [2]. Core Insights - The company is experiencing a period of increasing momentum and enhanced liquidity following the announcement of a major shareholder, Domino's Pizza LLC, agreeing to sell 10 million shares, representing approximately 7.66% of the total issued share capital [2]. - The company has successfully expanded its store count to 978 in Q3 2024, with plans to exceed 1,000 stores by November 2024. It has achieved positive same-store sales growth for 29 consecutive quarters [2]. - The company reported a turnaround in net profit for the first half of 2024, with an average daily sales per store of RMB 13,515, reflecting a year-on-year growth of 10.1% [2]. - The company plans to open 240 new stores in 2024, having already added 210 stores by Q3, indicating confidence in meeting its annual target [2]. Financial Summary - Total revenue for 2023 is projected at HKD 3,051 million, with a year-on-year growth rate of 51%. Revenue is expected to reach HKD 4,038 million in 2024, representing a growth rate of 32% [3]. - The company anticipates a significant increase in net profit, from a loss of HKD 27 million in 2023 to a profit of HKD 87 million in 2024, marking a growth rate of 428% [3]. - Earnings per share (EPS) are forecasted to improve from -0.20 in 2023 to 0.67 in 2024, with further increases to 1.73 in 2025 and 2.52 in 2026 [3]. - The company’s price-to-earnings (P/E) ratio is expected to be 94 in 2024, decreasing to 25 by 2026, indicating improving profitability [3]. Operational Highlights - The company has established a strong membership program, "达人荟," which has attracted 21.7 million members, contributing to its sales growth [2]. - The average payback period for new stores opened in 12 cities is under 9 months, demonstrating effective market entry strategies [2]. - The company maintains a healthy balance sheet with a debt-to-asset ratio of 52.32% and a net asset value per share of RMB 16.53 [6].