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].
达势股份：重大事项点评：势能上升期，流动性加强