Investment Rating - The report maintains a "Buy" rating for the company, with expectations of significant growth in adjusted net profit from 2024 to 2026 [1] Core Views - The company's brand momentum is strong, with leading same-store sales and store expansion performance, indicating a positive fundamental outlook [1] - The company is in a rapid store expansion phase, with a plan to open 240 new stores in 2024, aiming to surpass 1,000 stores by the end of the year, representing a year-over-year growth rate of over 30% [1] - The company's 1H24 revenue reached RMB 2.04 billion, a 48% increase year-over-year, with adjusted net profit turning positive at RMB 50.89 million and adjusted EBITDA growing by 84% to RMB 230 million [1] - Despite industry pressures, the company achieved a 3.6% year-over-year growth in same-store sales in 1H24 [1] Financial Performance and Projections - Revenue is projected to grow from RMB 4.282 billion in 2024E to RMB 6.945 billion in 2026E, with a compound annual growth rate (CAGR) of 28.01% [3] - Net profit attributable to the parent company is expected to increase significantly from RMB 19 million in 2024E to RMB 199 million in 2026E, with a CAGR of 359.25% [3] - Adjusted net profit is forecasted to grow from RMB 1.1 billion in 2024E to RMB 3.2 billion in 2026E, with a CAGR of 95% [1] - The company's ROE (Return on Equity) is expected to improve from 0.91% in 2024E to 8.44% in 2026E [3] Store Expansion and Market Position - The company is on track to reach the milestone of 1,000 stores by the end of 2024, reflecting a strong expansion strategy [1] - The company's competitive advantage in the pizza category is highlighted, with a focus on rapid store expansion and market penetration [1] Shareholder and Brand Relationship - Domino's Pizza LLC, a major shareholder, sold 10 million shares (7.66% of the company's equity) but remains supportive of the company's long-term growth, holding a 6.21% stake post-sale [1] - The sale is seen as a liquidity improvement measure, with no impact on the company's master franchise agreement with Domino's Pizza, Inc [1] Financial Ratios and Valuation - The company's P/E ratio is expected to decrease from 426.82 in 2024E to 41.29 in 2026E, indicating improving profitability and valuation [3] - The P/B ratio remains stable at 3.89 from 2024E to 2026E, reflecting consistent asset valuation [3]
达势股份：股东减持释放流动性，持续看好基本面