TAM JAI INTL (02217) recorded a nearly 10% year-on-year growth in mid-term revenue in the overseas market.

On November 14th, Tam Jai International (02217) released its performance for the six months ending September 30th, 2023. The group's revenue for the first half of the year was HKD 1.387 billion, a year-on-year increase of 9.96%. Net profit was HKD 81.629 million, a year-on-year decrease of 1.38%, with earnings per share of 6.1 HK cents. The company plans to distribute an interim dividend of 3 HK cents per share, which is the first since its listing in 2021. In the secondary market, Tam Jai International's stock initially rose more than 6% on November 14th and increased by 0.76% to HKD 1.33 per share. It is understood that Tam Jai International operates two major brands, "Tam Jai Yunnan Rice Noodles" and "Tam Jai San Gor Rice Noodles," and is a fast casual chain restaurant operator with operations in Mainland China, Singapore, and Japan in addition to its main base in Hong Kong. The announcement stated that the growth in revenue for the first half of the year was mainly driven by a net increase of 14 restaurants in the group's restaurant network and also benefited from the growth in comparable restaurant revenue in Hong Kong. In terms of stores, the opening speed of Tam Jai International has slowed due to the impact of the pandemic. As of the end of March 31, 2023, the company had a total of 175 stores for the 2022 fiscal year, distributed in Hong Kong, Mainland China, Singapore, and Japan. However, as of September 30th, the company had expanded its restaurant network to 222 restaurants. From a regional revenue perspective, Hong Kong, as the company's headquarters, is the core of Tam Jai International's stable base. In the first half of the year, the company's revenue from Hong Kong increased by 8.2% year-on-year to HKD 1.296 billion, mainly driven by improved performance in comparable restaurant revenue, which recorded a year-on-year increase of 2.9% in the first half of the year. In addition, as the pandemic recedes and more people return to physical workplaces, the turnover in commercial areas has significantly improved. At the same time, the company is expanding new businesses in Hong Kong through a multi-brand strategy. The company has entered into a franchise agreement with Toridoll Holdings Corporation (Toridoll Japan), a subsidiary of the controlling shareholder, to operate "Marugame Seimen" brand restaurants in Hong Kong through a franchising model. In addition, the company strategically expands its product categories, launching the new "Me More Afternoon Tea Set" and expanding its target customers. This strategy is expected to drive daily average revenue growth in each restaurant in the first half of 2024. Furthermore, Tam Jai International is expanding its business network in existing and overseas markets. On November 1st, the company announced that the net proceeds from its global offering were approximately HKD 1.051 billion. The Board of Directors has decided to change the use of the net proceeds from its original plan to expand restaurant networks (including only self-operated restaurants) to include opening restaurants through joint ventures and/or franchise arrangements in selected overseas markets. Regarding the Australian market, the company has established a joint venture with ST Group Food Industries Holdings Limited (ST Group), a well-known group listed on the Singapore Exchange and engaged in the Australian and New Zealand foodservice industry. Through the joint venture company and potential franchising models, the company is entering the Australian market. In the Southeast Asian market, Tam Jai International has signed a memorandum of understanding with BVCUISINE Inc., a subsidiary of Suyen Corporation, a comprehensive enterprise in the Philippines. The memorandum outlines plans to enter the Philippines market through a potential franchising model. Suyen currently operates five foodservice brands and has extensive experience and a comprehensive business network within its enterprise group.