HK Stock Market Move | DPC DASH (01405) rose by over 4%, with the company continuously optimizing the UE of its single stores. The path to improving future profitability is clear.

DPC DASH(01405) rose more than 4%, as of the time of filing, it has increased by 4.3% to 77.7 Hong Kong dollars, with a turnover of 27.9866 million Hong Kong dollars. On the news side, GF SEC pointed out that the company is the exclusive master franchisee of Domino's Pizza in mainland China, Hong Kong, and Macau. As of November 15, 2024, it has opened 1000 stores in 33 cities, and while accelerating store openings, same-store sales have achieved growth for 29 consecutive quarters (as of Q3 '24), making it one of the few brands that can achieve counter-cyclical growth in the food and beverage industry. The performance of new stores in new cities has been remarkable, setting global records for Domino's Pizza. The total sales in the first 30 days of the first stores in Xi'an, Changsha, Xiamen, and Hefei all exceeded 5 million yuan. The bank stated that the company's single-store UE continues to be optimized, and the expansion of scale brings about the dilution of various costs and the non-linear improvement of profitability. The goal for the next two years is to open 300-350 stores each year, with a clear target. The bank estimates that by 2030, there will be around 3000 Domino's Pizza stores in mainland China, which is nearly three times the current number of stores. The bank believes that Domino's Pizza has a strong brand momentum and is still in the growth stage in the Chinese market. While rapidly expanding its store network, it can still maintain same-store growth. Compared with its peers, there is a large potential for expansion of store locations and clear path for improving profitability in the future.