Greater China Equity Long/Short Analyst

Eric Chen

With a blend of sell-side and buy-side perspectives, Eric has covered and researched hundreds of Greater China equities in TMT and consumer spaces - two sectors woven together by the overarching thesis of technology empowering consumption. 

Eric is highly experienced in fundamental equity long short strategy. He seeks to produce differentiated and original research that combines holistic qualitative framework, unique angles and robust modelling. The process helps gain deep insights into critical value drivers misunderstood by the market, which results in mis-priced stocks and hence long/short opportunities.

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

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

China Catering: Channel Checks Reinforcing Our Bullish View on DPC Dash

DPC Dash (1405 HK) – Sales Beats as New Markets Continue to Succeed

DPC Dash (1405 HK): Recipe for Multibagger

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Equity Bottom-Up

<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