Investment Rating - The report assigns an "Accumulate" rating for the company with a target price of 72 HKD, reflecting a potential upside from the current price of 70 HKD [4]. Core Insights - The pizza delivery market in China is expected to grow significantly, with a projected CAGR of 15.5% from 2022 to 2027, reaching a market size of approximately 771 billion CNY by 2027. This growth is driven by increasing penetration rates and a rising acceptance of cheese and sweet flavors among younger consumers [1][2]. - The company, as the largest pizza brand franchisee of Domino's in China, has shown strong revenue growth, achieving a revenue of 30.5 billion CNY in 2023, with a CAGR of 38% from 2019 to 2023. The company has also maintained positive same-store sales growth for 27 consecutive quarters [1][3]. - The company is positioned as a pizza delivery expert, focusing on rapid store openings and same-store sales growth, with plans to open 180 to 240 new stores in 2023 and 2024, aiming for a total of 1,408 to 1,608 stores by 2026 [3][4]. Summary by Sections Company Overview - The company has been operating in China since 1997 and has rapidly expanded its store network since 2017, with a focus on major cities like Beijing and Shanghai, which contribute over 50% of its revenue [1][3]. - The company has introduced over 120 new menu items since 2018, enhancing its product offerings and maintaining competitive pricing [2][3]. Industry Analysis - The pizza industry in China has a high level of chain concentration, with leading brands focusing on high-tier cities, indicating significant growth potential for the company [1][2]. - The report highlights the increasing demand for pizza delivery services, particularly in non-dine-in scenarios, which aligns with the company's operational model [2][3]. Competitive Advantages - The company benefits from a strong supply chain and a centralized kitchen model, which supports efficient delivery and product quality [2][3]. - The management team, led by experienced professionals from the fast-food industry, has successfully implemented strategies that have resulted in consistent sales growth and operational improvements [2][3]. Growth Prospects - The company is expected to continue its expansion, with revenue forecasts of 39.8 billion CNY, 51.4 billion CNY, and 65.7 billion CNY for 2024, 2025, and 2026, respectively, reflecting year-on-year growth rates of 30.6%, 28.9%, and 27.9% [3][4]. - The adjusted net profit is projected to turn positive in 2023, with significant growth expected in the following years, indicating improving profitability as the company scales [3][4].
达势股份：开店黄金期的披萨外送龙头，盈利能力超预期改善