Investment Rating - The investment rating for the company is "Buy" with a 6-month target price increase of over 20% [1]. Core Views - The report highlights that the company is facing pressure on same-store sales recovery due to high base comparisons from the previous year, but share buybacks demonstrate confidence in long-term development [1]. - The company plans to open 80-100 new stores for its brand "Tai Er" in mainland China and 15-20 internationally, with a total of 35-40 new stores for "Song Hotpot" in mainland China [1]. - The report anticipates steady expansion for "Tai Er" and improved profit margins for "Song Hotpot" following optimization adjustments, with earnings forecasts for 2024, 2025, and 2026 at 540 million, 650 million, and 770 million respectively [1]. Summary by Sections Store Performance - "Tai Er" reported a same-store daily sales decline of 13.9% in Q1, with a table turnover rate of 3.9 and an average customer spend of 73 yuan [1]. - "Song Hotpot" experienced a same-store daily sales decline of 34.8% in Q1, with a table turnover rate of 3.0 and an average customer spend of 116 yuan [1]. - "Jiu Mao Jiu" saw a same-store daily sales decline of 4.1% in Q1, with a table turnover rate of 3.0 and an average customer spend of 57 yuan [1]. Share Buyback Decision - The company's board has approved a share buyback of up to 100 million HKD, representing 10% of the total issued shares, indicating confidence in the company's long-term business outlook [1]. Earnings Forecast and Investment Advice - The report maintains a "Buy" rating, with projected earnings for 2024, 2025, and 2026 at 540 million, 650 million, and 770 million respectively, corresponding to PE ratios of 12, 10, and 8 times [1].
去年同期高基数下阶段同店修复承压，回购彰显长期发展信心