Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 78.47 [7][8]. Core Insights - The company is expected to achieve a milestone of 1,000 stores by Q4 2024, indicating strong growth potential and improved profitability due to economies of scale [2][4]. - The major shareholder, Domino's Pizza LLC, is selling 10 million shares, which is 7.66% of the issued share capital, but this is not expected to negatively impact the company's operations or franchise relationships [2][3]. - The company has shown resilience with a positive same-store sales growth for 29 consecutive quarters, and the membership base has reached 21.7 million, contributing to demand growth [4]. Summary by Sections Company Overview - As of September 30, 2024, the company operates 978 stores, with a net increase of 210 stores in the year and 64 stores in Q3 [4]. - The company has achieved a turnaround in profitability with positive adjusted and net profit in the first half of 2024 [2]. Financial Projections - Revenue projections for 2024-2026 are estimated at RMB 40.80 billion, RMB 53.69 billion, and RMB 68.24 billion respectively, with a significant growth rate of 33.73% in 2024 [6][12]. - The adjusted EPS is forecasted to be RMB 0.81, RMB 1.40, and RMB 2.54 for 2024-2026 [5][12]. Valuation Metrics - The report uses a price-to-sales (PS) ratio of 2.3x for 2024, reflecting a premium due to the company's strong growth prospects [5]. - The company’s market capitalization is approximately HKD 9.003 billion, with a closing price of HKD 69.00 as of October 17, 2024 [8].
达势股份：流动性有望提升，千店里程碑可期