Fortune News, October 22, a catering group that supplies snacks and drinks in Taiwan.$Fast Food Empire (01843.HK) $It opened at HK $0.94 in secret trading and finally closed at HK $1.34, up 106.15 per cent from the share price, earning HK $2760 per hand.

In addition, according to the previous public information, the number of applicants for public placement in the fast food empire was 7226, with a success rate of 19.48% and a subscription multiple of 13.68 times. The relevant data collected by Futu Information are as follows:

Investment highlight

The company's business:The fast food empire keeps growing by opening new stores, and the number of snack bars has been growing steadily, with revenue of S $15.735 million, S $18.581 million and S $21.325 million respectively in 16-18, with an annual compound growth rate of about 16.4%. The net profit during the period was about S $3.137 million, S $4.028 million and S $4.905 million, with an annual compound growth rate of about 25%, with an obvious growth trend.

On the market side:Singapore's fast food industry grew from US $833.4 million in 2014 to US $1004.9 million in 2018, a compound growth rate of about 4.8 per cent. It is estimated that from 2019, the market size will reach 1060.7 million US dollars, the market size will continue to expand, 2024 is expected to grow to 1321.3 million US dollars, the market has great potential for development.

Risk hint

Industry competition:The competition in the catering industry is fierce, and the company mainly relies on the market awareness of Taiwan snack brands, so the audience may be limited. According to Frost Sullivan, the sales generated by Shilin stores and restaurant restaurants in Malaysia and Singapore accounted for about 0.9% and 0.6% of the total fast food market transactions in various countries in 2018, respectively, far lower than the leading local brands, and their market share needs to be improved.

Mode of operation:The company's main mode of operation is divided into self-management mode and franchise mode and license mode. The stores in Singapore and West Malaysia are mainly proprietary stores, which may have the problem of over-reliance on owners. On the other hand, the franchise and licensing models are mainly distributed outside Singapore and West Malaysia, which may lead to a greater reliance on franchising and licences as a source of income.