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].
达势股份：品牌势能上升期，成长路径清晰