Glonghui, January 19 | Huafu Jianye Securities reaffirmed Tam Tsai International's “buy” rating, with a target price of HK$1.97. Based on a price-earnings ratio of 10 times FY3/25E excluding cash, it is believed that the fundamentals of Tan Tsai International's leading position in the rice noodle brand market and steady financial situation are very strong. According to Huafu Construction Securities, Tam Tsai International's overseas market operating losses in the first half of fiscal year 2024 narrowed, down 68.3% year-on-year to about HK$5.3 million. The Group is improving the restaurant layout and adjusting the menu to make the brands and dining options more appealing to cater to the tastes of local customers. Development of a multi-brand strategy in the Hong Kong market: Tam Tsai International is undertaking a new experiment in multi-brand strategy and recently signed a Hong Kong franchise agreement with Marugame Seimen, one of the brands under the parent company Toridoll. I believe this move will pave the way for further cooperation, and there are 17 other brands under Toridoll that can provide such an opportunity. Furthermore, new stores will be the driving force for growth. Tam Tsai International expects a net increase of 10 stores in Hong Kong and a net increase of more than 20 stores in mainland China in the 2025 fiscal year. The number of stores in Singapore and Japan is expected to expand to 20-30 in the next few years.