Citic Lyon: Initiate coverage on DPC DASH (01405) with "outperform" rating, target price of HKD 49.

Guosen Securities released a research report stating that the Chinese food delivery market has entered a mature stage, with intense platform competition and frequent subsidy battles. Despite the increase in order volume, the profit margins of food and beverage companies are being further squeezed. With the decline in subsidies, companies with scalable models and strong single-store profit capability will become market winners. Guosen Securities initiated coverage on DPC DASH (01405) for the first time, with an "Outperform" rating and a target price of HK$49. Guosen Securities pointed out in the report that DPC DASH is the exclusive master franchisee of Domino's Pizza in China, emphasizing the brand's extreme focus on delivery quality and brand value. Among the food and beverage companies covered by Guosen Securities, it is the only company with a self-built delivery team. Leveraging core markets such as Beijing and Shanghai, its self-built delivery system not only ensures service stability but also effectively helps to build up member user assets for the brand. New second-tier city stores have now become the company's core growth engine, with the proportion of its stores expected to reach 61% by 2025 and still increasing. Compared to its peers, DPC DASH currently has a smaller base of stores, indicating the company's greater long-term potential for expansion. According to Guosen Securities' calculations, DPC DASH is expected to open 3,572 stores in first and second-tier cities, with broad growth prospects in the medium to long term.