HK Stock Market Move | In early trading, DPC DASH(01405) surged over 5% to hit a record high. Domino's Pizza China is accelerating its store expansion, with institutions predicting a doubling of the number of stores in the next 3 years.

DPC DASH (01405) rose more than 5% in the early morning, reaching a high of 99 Hong Kong dollars during the session, doubling from the IPO price of 46 Hong Kong dollars. As of the time of writing, it is up 5.33% to 98.8 Hong Kong dollars, with a trading volume of 18.8524 million Hong Kong dollars. In terms of news, Domino's Pizza recently announced the closure of 205 loss-making stores worldwide, with 172 of them located in Japan. However, Domino's continues to expand in China. In the first half of 2024, Domino's Pizza's exclusive master franchisee in China, DPC DASH, added a net of 146 stores and plans to open 240 stores by 2024. Pacific Securities pointed out that the Dominos UE model is gradually optimized, and there are still many emerging markets in the early stages of penetration. With the acceleration of the company's store expansion, the scale effect will further increase, and performance is expected to see elastic growth. It is estimated that the number of stores will double in the next 3 years, with a revenue CAGR of over 30%. Considering the broad prospects of the pizza industry, the company, as a leading enterprise in the pizza industry, is in the early stage of high-speed development, demonstrating high growth potential within the industry. An initial coverage is given a valuation of 2.3 times PS for 2025.