Our point of view: at present, the company's revenue is mainly contributed by the Hong Kong market, and the company's share of Asian pasta catties in the Hong Kong market has reached 64.4%. At the same time, it is also actively expanding the mainland and international markets. Despite the impact of the epidemic, the company maintained the pace of opening stores, adjusted Laidan prices, increased marketing efforts, and flexibly used restaurant food and takeout channels, and achieved steady growth in revenue during the period. at the same time, the company also took the initiative to control restaurant operating costs. during the period, the adjusted profit margin remained basically stable compared with the same period last year. Under the repeated epidemic situation, the performance of the company still has strong resilience and flexibility. On 2022-5-26, the closing price corresponding to FY2023E/2024E (Bloomberg consensus forecast) PE was 12cm 7x, lower than the industry hub level.
The performance grew steadily and surpassed expectations. FY2022 achieved an operating income of HK $2.28 billion, an increase of 26.8% over the same period last year. From a regional point of view, Hong Kong's income accounts for 98%; from the perspective of the upper and lower half of the rickshaw, the income reached HK $11.8 and HK $1.09 billion respectively, an increase of 43.0% and 12.9% over the same period last year. Net profit was HK $200 million, down 29.5% from a year earlier.
Adjusted net profit, excluding listing expenses and government subsidies, was HK $170 million, up 17.8 per cent from a year earlier. The net interest rate was 8.9%, down 7.1 percentage points from the same period last year; the adjusted net interest rate was 7.3%, down 0.5 percentage points from the same period last year. During the period, the dividend per share was HK $114,000,000, with a total dividend of HK $150 million, accounting for 75 per cent of net profit, exceeding expectations.
Performance growth is driven by endogenous growth + store opening, and the opening speed of FY2023-2024 is accelerated. On the one hand, the company's individual store revenue continues to grow.
In the first three quarters of FY2022, revenue from comparable restaurants in Hong Kong returned to dry before COVID-19. In February 2022, the company adjusted prices slightly (2%), which also led to an increase in per capita consumption and revenue per store. The total number of same-store sales of FY2022 increased by 9.6% year-on-year. Per capita consumption was HK $59.8, an increase of 2.4% over the same period last year. The average number of daily bowls sold per seat was 6.3 broken, an increase of 0.3 bowls over the same period last year. The average daily income per store was HK $40175, an increase of 7.5 per cent over the same period last year. On the other hand, the company maintains the store opening speed and maintains the Hong Kong market share while actively expanding the mainland and international markets. 2022Q1 has successfully opened its first store in Japan and is expected to enter the Australian market this fiscal year. FY2022 has a net increase of 28 stores (Hong Kong 18 + mainland 8 + Singapore 1 + Japan 1), and the total number of stores opened by the end of the period is 175 (Hong Kong 162 + mainland 8 + Singapore 4 + Japan 1). It is expected that FY2023/FY2024 will open 66 (Hong Kong 14 + mainland 26 + Singapore 11 + Japan 8 + Australia 7) / 79 (Hong Kong 10 + mainland 37 + Singapore 9 + Japan 15 + Australia 8) stores by 2024 The total number of stores will reach 320 (Hong Kong 186 + mainland 71 + Singapore 24 + Japan 24 + Australia 15).
The operating cost of Pingde increased: the operating cost of the company's restaurant and central kitchen was HK $1.8 billion, an increase of 24.1% over the same period last year, of which food and beverage costs, staff costs, depreciation and rental of right-to-use assets accounted for 29% (+ 0.4pct), 33% (+ 0.2pct) and 22% (- 1.8pct) respectively.
The cost of advertising and housekeeping during the period was HK $47 million, which increased rapidly. Yoy+115.1%, was mainly due to the more aggressive marketing strategy and the demand for new stores during the period. The company applies the new supply chain management system, actively integrates the central kitchen of Pingzi and Brother San, and actively controls the cost of raw materials. the speed of opening stores in the mainland is faster in the next two years, and the company is also preparing for the construction of a central kitchen in the mainland.
Risk tips: food safety; recurrent epidemic situations; significant fluctuations in raw material prices and rents; performance of the same store is not as expected; shop opening is not as expected.
