External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

Equity Bottom-Up

<ul><li>DPC Dash is the master franchisee of Domino's Pizza in China, currently operating 768 stores</li><li>Despite current lack of profitability, DPC Dash has potential to become second largest player in Chinese pizza market in four years</li><li>Strong leadership team and focus on value for consumers position DPC Dash to capitalize on low number of pizza stores per population in China compared to other key markets</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

DPC Dash is the master franchisee of Domino's Pizza in China, currently operating 768 storesDespite current lack of profitability, DPC Dash has potential to become second largest player in Chinese pizza market in four yearsStrong leadership team and focus on value for consumers position DPC Dash to capitalize on low number of pizza stores per population in China compared to other key marketsThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Dpc Dash (1405 HK) - Thursday, Oct 24, 2024

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

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>The spread to <a href="https://www.smartkarma.com/entities/toridoll-holdings-corporation" target="_blank" data-smartkarma-citation="entities:8193:1" rel="noopener">TORIDOLL Holdings Corporation (3397 JP)</a>’s HK$1.58 offer for <a href="https://www.smartkarma.com/entities/tam-jai-international-co-ltd" target="_blank" data-smartkarma-citation="entities:34227:1" rel="noopener">Tam Jai International (2217 HK)</a> has risen to 9.7% ahead of the scheme document's release. </li>
<li>Several readers have asked whether the Tam Jai offer will mirror the Goldlion and Soundwill deal break. The schemes share similarities but are also different in several ways.</li>
<li>The scheme's vote risk has undoubtedly increased partly due to the recent 2025 results and deal breaks. This situation warrants a safety-first approach.  </li>
</ul>


The spread to TORIDOLL Holdings Corporation (3397 JP)’s HK$1.58 offer for Tam Jai International (2217 HK) has risen to 9.7% ahead of the scheme document's release. 
Several readers have asked whether the Tam Jai offer will mirror the Goldlion and Soundwill deal break. The schemes share similarities but are also different in several ways.
The scheme's vote risk has undoubtedly increased partly due to the recent 2025 results and deal breaks. This situation warrants a safety-first approach.  


Tam Jai (2217 HK): Anxiety Creeps in Ahead of the Scheme Document

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/chagee-holdings-limited" target="_blank" data-smartkarma-citation="entities:45011:1" rel="noopener">Chagee Holdings (CHA US)</a>, a leading premium tea drinks brand, is seeking to raise US$382-411 million through a Nasdaq IPO.</li>
<li>We previously discussed the IPO in <a href="https://www.smartkarma.com/insights/chagee-holdings-cha-us-ipo-the-bull-case" target="_blank" data-smartkarma-citation="insights:181653" rel="noopener">Chagee Holdings (CHA US) IPO: The Bull Case</a> and <a href="https://www.smartkarma.com/insights/chagee-holdings-cha-us-ipo-the-bear-case" target="_blank" data-smartkarma-citation="insights:182085" rel="noopener">Chagee Holdings (CHA US) IPO: The Bear Case</a>.</li>
<li>There are four cornerstone investors. Our valuation analysis suggests Chagee is attractively valued at the IPO price range. Therefore, we would participate in the IPO.</li>
</ul>



Chagee Holdings (CHA US), a leading premium tea drinks brand, is seeking to raise US$382-411 million through a Nasdaq IPO.
We previously discussed the IPO in Chagee Holdings (CHA US) IPO: The Bull Case and Chagee Holdings (CHA US) IPO: The Bear Case.
There are four cornerstone investors. Our valuation analysis suggests Chagee is attractively valued at the IPO price range. Therefore, we would participate in the IPO.


Chagee Holdings (CHA US) IPO: Valuation Insights

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) - Thursday, Oct 24, 2024

Despite current lack of profitability, DPC Dash has potential to become second largest player in Chinese pizza market in four years

Value Investors Club

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

Tam Jai (2217 HK): Anxiety Creeps in Ahead of the Scheme Document

Arbs cannot afford another HK deal break on their books. Recent events have undoubtedly increased the scheme's vote risk, warranting a safety-first...

Arun George

Chagee Holdings (CHA US) IPO: Valuation Insights

Our valuation analysis suggests Chagee is attractively valued at the IPO price range. Therefore, we would participate in the IPO.

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Dpc Dash (1405 HK) - Thursday, Oct 24, 2024

Despite current lack of profitability, DPC Dash has potential to become second largest player in Chinese pizza market in four years

Value Investors Club

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

Tam Jai (2217 HK): Anxiety Creeps in Ahead of the Scheme Document

Arbs cannot afford another HK deal break on their books. Recent events have undoubtedly increased the scheme's vote risk, warranting a safety-first...

Arun George

Chagee Holdings (CHA US) IPO: Valuation Insights

Our valuation analysis suggests Chagee is attractively valued at the IPO price range. Therefore, we would participate in the IPO.

Arun George

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