External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>1H24 results were inline, but the underlying is good (positive SSSG, OP margin improvement, etc.).</li><li>Going into 2H24E, while the NP margin guidance has been raised to about 2%, we are slightly more optimistic, supported by: 1) positive SSSG in Jul 2024, 2) a surge in the number of members, 3) robust dine-in sales in the new growth markets, 4) accelerated store expansion, 5) more machines for store-level automation, and 6) more targeted and efficient marketing, etc.</li><li>The old markets were slightly under pressure, but more than offset by the robust new markets, hence the margins continued to improve.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

1H24 results were inline, but the underlying is good (positive SSSG, OP margin improvement, etc.).Going into 2H24E, while the NP margin guidance has been raised to about 2%, we are slightly more optimistic, supported by: 1) positive SSSG in Jul 2024, 2) a surge in the number of members, 3) robust dine-in sales in the new growth markets, 4) accelerated store expansion, 5) more machines for store-level automation, and 6) more targeted and efficient marketing, etc.The old markets were slightly under pressure, but more than offset by the robust new markets, hence the margins continued to improve.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

DPC Dash (1405 HK) - Prudence Guidance with Solid Fundamentals

<ul><li>What is new? DPC Dash announced a positive profit alert for 1H24. For 1H24, the company is now expecting that:1) sales to increase by 45%+ YoY to RMB 2.0bn</li><li>2) net profit to be at RMB 10.0mn+ (vs RMB 8.8mn in 1H23), 3) adj. net profit to be at RMB 48mn+ (vs RMB 17.4mn losses in 1H23).</li><li>Also, the company has opened 146 net new stores (12/ 134 in mature/ emerging markets) and total number has reached 914, representing 36% YoY growth.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

What is new? DPC Dash announced a positive profit alert for 1H24. For 1H24, the company is now expecting that:1) sales to increase by 45%+ YoY to RMB 2.0bn2) net profit to be at RMB 10.0mn+ (vs RMB 8.8mn in 1H23), 3) adj. net profit to be at RMB 48mn+ (vs RMB 17.4mn losses in 1H23).Also, the company has opened 146 net new stores (12/ 134 in mature/ emerging markets) and total number has reached 914, representing 36% YoY growth.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

DPC Dash (1405 HK) - Outlook Stays Healthy After Positive Profit Alert

Greater China Equity Long/Short Analyst

Eric Chen

<ul>
<li>Company issued 1H24 profit alert after market yesterday which significantly beat even the high-end sell-side expectations. </li>
<li>Impressive SSSG and store-level unit economics imply sizable potential for operating leverage and earnings growth in the mid to long term.</li>
<li>The profit alert, along with 2Q operating data released earlier, reinforced our confidence in earnings estimates of RMB130 million/RMB300 million for FY24/25 respectively. </li>
</ul>


Company issued 1H24 profit alert after market yesterday which significantly beat even the high-end sell-side expectations. 
Impressive SSSG and store-level unit economics imply sizable potential for operating leverage and earnings growth in the mid to long term.
The profit alert, along with 2Q operating data released earlier, reinforced our confidence in earnings estimates of RMB130 million/RMB300 million for FY24/25 respectively. 


DPC Dash (1405.HK): 1H24 Profit Alert Validating Investment Case

<ul>
<li>The company’ share bucked China catering sector’s down trend and rallied 30% in last few weeks.</li>
<li>Its 2Q operating data suggest that its store opening is well on track with healthy SSSG, underpinning strong margin expansion.</li>
<li>We believe that market still underestimates its growth and earnings potential which could beat consensus by wide margin. Interim results to be announced in August will be key catalyst.</li>
</ul>


The company’ share bucked China catering sector’s down trend and rallied 30% in last few weeks.
Its 2Q operating data suggest that its store opening is well on track with healthy SSSG, underpinning strong margin expansion.
We believe that market still underestimates its growth and earnings potential which could beat consensus by wide margin. Interim results to be announced in August will be key catalyst.


DPC Dash (1405 HK): Strong 2Q Data Pointing to Underappreciated Growth and Margin Potential

<ul>
<li>We believe consensus has not fully captured the company’s margin upside for FY24/25, likely due to management’s excessively conservative guidances.</li>
<li>Our confidence is underpinned by positive SSSG trend, accelerating store expansion and clear trajectory for store margin improvement.</li>
<li>We expect the company to generate RMB150/320 million adjusted net profit for FY24/25 respectively, compared to RMB30/150 million baked in consensus. Reiterate buy with HK$80 target price (30x FY25 earnings).  </li>
</ul>


We believe consensus has not fully captured the company’s margin upside for FY24/25, likely due to management’s excessively conservative guidances.
Our confidence is underpinned by positive SSSG trend, accelerating store expansion and clear trajectory for store margin improvement.
We expect the company to generate RMB150/320 million adjusted net profit for FY24/25 respectively, compared to RMB30/150 million baked in consensus. Reiterate buy with HK$80 target price (30x FY25 earnings).  


DPC Dash (1405 HK): Margin Potential Underappreciated

China

DPC Dash Ltd operates franchise fast food restaurants. The Company through its chain stores, supplies pizza, drinks, and other related snacks. DPC Dash conducts businesses in Shanghai and Hong Kong.

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DPC Dash (1405 HK)

DPC Dash (1405 HK) - Prudence Guidance with Solid Fundamentals

The old markets were slightly under pressure, but more than offset by the robust new markets, hence the margins continued to improve.

CMB International

DPC Dash (1405 HK) - Outlook Stays Healthy After Positive Profit Alert

What is new? DPC Dash announced a positive profit alert for 1H24. For 1H24, the company is now expecting that:1) sales to increase by 45%+ YoY to...

CMB International

DPC Dash (1405.HK): 1H24 Profit Alert Validating Investment Case

Company's profit alert significantly beats expectations, signaling potential for strong earnings growth in the mid to long term and validating our...

Eric Chen

DPC Dash (1405 HK): Strong 2Q Data Pointing to Underappreciated Growth and Margin Potential

DPC Dash's strong 2Q operating data indicate healthy growth potential and margin expansion that are underestimated by market. Interim results in...

Eric Chen

DPC Dash (1405 HK): Margin Potential Underappreciated

Consensus underestimates the company's margin upside for FY24 and beyond, which is driven by positive SSSG trend, improving store economics and...

Eric Chen

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

DPC Dash (1405 HK) - Prudence Guidance with Solid Fundamentals

The old markets were slightly under pressure, but more than offset by the robust new markets, hence the margins continued to improve.

CMB International

DPC Dash (1405 HK) - Outlook Stays Healthy After Positive Profit Alert

What is new? DPC Dash announced a positive profit alert for 1H24. For 1H24, the company is now expecting that:1) sales to increase by 45%+ YoY to...

CMB International

DPC Dash (1405.HK): 1H24 Profit Alert Validating Investment Case

​Company's profit alert significantly beats expectations, signaling potential for strong earnings growth in the mid to long term and validating our...

Eric Chen

DPC Dash (1405 HK): Strong 2Q Data Pointing to Underappreciated Growth and Margin Potential

DPC Dash's strong 2Q operating data indicate healthy growth potential and margin expansion that are underestimated by market. Interim results in...

Eric Chen

DPC Dash (1405 HK): Margin Potential Underappreciated

Consensus underestimates the company's margin upside for FY24 and beyond, which is driven by positive SSSG trend, improving store economics and...

Eric Chen

Company's profit alert significantly beats expectations, signaling potential for strong earnings growth in the mid to long term and validating our...