Number of stores: As of the end of Q1, Taier/ Nan Hot Pot/ Jiumaojiu/ Lai Meijiu/ Shanwai had a net opening of 6/4/-2/0/2 stores to 584/66/75/7/2, respectively. 24 The goal of opening stores is to open 80-100 homes in mainland Taier, and open 15-20 in the international market, and 35-40 in mainland China. Considering that stores are generally concentrated in Q2-Q4, there are generally few stores opened in Q1 due to the Spring Festival holiday, and the current opening schedule is in line with expectations.
Store performance:
(1) Taiji: Q1 same-store daily sales -13.9%, Q1 flips 3.9 (Mainland China 3.9/other 5.0), customer unit price 73 yuan (Mainland China 68 yuan/164 yuan in other regions); (2) Hot pot: Q1 same-store daily sales ratio is -34.8%, Q1 flips 3.0, customer unit price 116 yuan; (3) Jiumao Jiu: Q1 same-store daily sales -4.1%, Q1 flips 3.0, customer unit price 57 yuan.
In 23Q1, the average daily sales volume of Xia Taiji (mainland China store) and Gan Hot Pot 24Q1 decreased. 24Q1 The decline in average customer consumption of Tai'er (stores in mainland China) and hot pot was due to the external environment, the adjustment of the brand's development strategy (improving the consumer price ratio), and the increase in promotional activities; and the high proportion of Tai'er restaurants located in low-tier cities (which is in line with the Group's expansion strategy to seize a larger market share) also led to a decline in the average consumption of Tai'er customers in mainland China.
Repurchase Decision:
The Board of Directors of the Company resolved on April 19 to repurchase the Company's shares on the open market from time to time in accordance with the resolution passed at the Company's Annual General Meeting of Shareholders for a maximum total amount of HK$100 million. Under the repurchase authorization, the board may repurchase no more than 10% of the total number of issued shares on the Hong Kong Stock Exchange. The board of directors believes that the recent transaction price of shares does not reflect their intrinsic value, and believes that the proposed share repurchase shows the company's confidence in its long-term business prospects.
Profit forecasting and investment suggestions: Optimistic about Taier's subsequent steady expansion, encouraging hotpot optimization and adjustments to further speed up store opening and profit margin improvement, and pay attention to the progress of franchise store expansion. The company's 24/25/26 performance is expected to be 5.4/6.5/770 million yuan (in line with the previous forecast). The current stock price corresponding to the 24/25/26 price-earnings ratio PE is 12/10/8X, maintaining a “buy” rating.
Risk warning: food safety risks; same-store restoration falls short of expectations; new brand development falls short of expectations; repurchase matters fall short of expectations