Investment Rating - The report maintains a "Buy" rating for Tam Jai International (02217 HK) with a target price of HK3.034 billion, HK3.595 billion, representing a compound annual growth rate (CAGR) of 9.4% [12][71]. - The company plans to expand its business into Australia and the Philippines, leveraging a joint venture and franchise agreements to capture new growth opportunities [16][54]. - The impact of Hong Kong residents traveling to mainland China for consumption is expected to be relatively minor for the company, as its fast-casual brand is less affected compared to other dining sectors [6][54]. Summary by Sections Financial Performance - For FY2024, the company reported a revenue increase of 5.9% to HK119 million, a decrease of 15.8% year-on-year [54][59]. - Adjusted net profit, excluding government subsidies, showed a significant increase of 34.2% year-on-year [54][59]. - The operating profit margin is expected to remain around 6% from FY2025 to FY2027, despite ongoing employee cost pressures [13][54]. Market Expansion - The company is actively pursuing international expansion, with plans to open its first restaurant in Melbourne, Australia, in 2024 and a restaurant in the Philippines by March 2025 [16][54]. - The franchise model will allow the company to introduce more brands in Hong Kong, enhancing its growth potential [18][54]. Revenue Breakdown - Revenue from Hong Kong accounted for 93.5% of total revenue in FY2024, with a year-on-year growth of 4.8% [58][52]. - Revenue from mainland China and overseas markets is projected to grow significantly, with a 25.1% year-on-year increase in FY2024 [58][67]. Future Projections - The report forecasts net profit growth for FY2025 to FY2027, with expected net profits of HK139 million, and HK$149 million, respectively, indicating a CAGR of 8.0% [71][54]. - The company aims to diversify its brand portfolio through franchise agreements, targeting the opening of 50 different restaurant brands in the medium to long term [18][54].
谭仔国际：海外扩张及特许经营模式有望带来上升空间，维持“买入”评级