Investment Rating - The report gives a "Buy" rating for the company, with a target price of 98.5 HKD per share based on a 2.3x PS valuation for 2025 [6]. Core Insights - The company, as the exclusive franchisee of Domino's Pizza in mainland China, Hong Kong, and Macau, is entering a rapid store expansion phase with expected profitability improvements. In 2023, the company achieved a revenue of 3.05 billion CNY, with a CAGR of 38.2% from 2019 to 2023. By the end of 2024, the company is projected to have over 1,000 stores, significantly up from 100+ in 2017 [4][6]. - The domestic pizza industry is in a growth phase, with a market size of 37.5 billion CNY in 2022 and a CAGR of 7.8% from 2017 to 2022. The penetration rate in lower-tier markets remains low, indicating substantial expansion potential [4][6]. - The report highlights the successful growth strategies of Domino's in the U.S. and draws parallels to the company's potential in China, emphasizing the importance of operational efficiency, digital innovation, and a strong franchisee management system [4][6]. Summary by Sections 1. Company Overview - The company is the exclusive franchisee of Domino's Pizza in China, having undergone significant management changes and expansion since 2017. It has rapidly increased its store count from 268 in 2019 to 914 in the first half of 2024 [15][20]. 2. Market Potential - The Chinese pizza market is expected to grow significantly, with projections indicating a market size of 45.8 billion CNY in 2023 and 77.1 billion CNY by 2027, reflecting a CAGR of 15.5% [48]. 3. Financial Performance - The company has shown strong revenue growth, with a 2023 revenue of 3.05 billion CNY, and is expected to reach 4.26 billion CNY in 2024, representing a 39.6% year-on-year increase. The net profit is projected to turn positive in 2024, with a net profit margin of 2.5% in the first half of 2024 [6][35]. 4. Competitive Advantages - The company maintains a competitive edge through its commitment to service efficiency, with a 30-minute delivery guarantee, a high-quality product offering, and a robust supply chain management system [4][6]. 5. Management and Governance - The management team, led by CEO Wang Yi, has extensive experience in the fast-food industry, contributing to the company's strategic direction and operational efficiency [20][22]. 6. Future Outlook - The company is expected to double its store count in the next three years, with a revenue CAGR of over 30%. The anticipated financial performance includes revenues of 4.26 billion CNY in 2024, 5.22 billion CNY in 2025, and 6.37 billion CNY in 2026 [6][35].
达势股份：比萨外送第一品牌，高性价比连锁餐饮成长股