H1 净开店146 家、完成全年计划61%，扩张速度超预期。截至1H24末门店总数914 家、较2023 年末净增146 家、增长19.0%，完成年初制定的全年新开计划（240 家）60.8%、速度超预期，已覆盖33 个城市、上半年新拓4 城（江门、台州、金华、惠州）。截至24/8/20 已增开31 家、29 家在建、21 家已签约。occurrences
On August 28, the company announced its 24-year interim results, 1H24 revenue of 2.04 billion yuan/ +48%, net profit of 10.91 million yuan/reversal of loss, net interest rate of 0.5%, adjusted net profit of 50.89 million/reverse loss, adjusted EBITDA of 0.23 billion yuan/ +84%.
reviews
H1 opened 146 net stores, completed 61% of the annual plan, and expanded faster than expected. By the end of 1H24, the total number of stores was 914, a net increase of 146, an increase of 19.0% from the end of 2023. It completed 60.8% of the annual new opening plan (240) set at the beginning of the year, exceeding expectations, covering 33 cities and 4 new cities (Jiangmen, Taizhou, Jinhua, and Huizhou) in the first half of the year. As of 24/8/20, 31 additional ones have been opened, 29 are under construction, and 21 have been contracted.
The same store bucked the trend, reflecting strong product strength and brand potential. Under the overall pressure on restaurants, the company's same-store sales were +3.6%, the average daily sales volume of a single store was 13515 yuan/ +10.1%, and the average order price was 83.6 yuan/ -5%. The average price drop was mainly due to a decline in the share of high-order takeout channels (1H24 takeout order revenue accounted for 46.4%/-17.2pct). Among them, some cities in the new growth market have not yet opened takeout. It is expected that the opening of the future will drive store sales and customer orders.
Store UE continues to be optimized, the cost rate at the group level is declining, and the scale effect is gradually showing. The operating profit margin at the 1H24 restaurant level is 14.5% /+1.0pct. The main cost item accounts for changes in revenue, and the upward effect of operating leverage continues. Raw materials 27.3% /-0.3pct, employee costs 27.4% /+0.5pct (mainly due to expanding new markets, reserve talents in advance, training costs are relatively high), rent-related expenses are 9.6% /-0.3pct, discounted 4.8% /-0.4pct, advertising promotion 5.8% /-0.5pct. Group-level employee salary (excluding equity incentives) 5.5% /-1.9pc, group-level discount of 1.4% /-0.5pct, improved management efficiency and improved scale effect. After adjusted EBITDA 11.4% /+2.2pct, adjusted net interest rate 2.5% /+3.8pct, profitability improvement progress was better than expected.
Profit Forecasts, Valuations, and Ratings
The company has an outstanding competitive advantage in the pizza category. It is currently in a period of rapid store expansion. The net profit of 24E~26E is 0.019/0.043/0.199 billion yuan, adjusted net profit of 0.11/0.16/0.32 billion yuan, +1145%/+50%/+95% year-on-year, maintaining a “buy” rating.
Risk warning
Stock liquidity risk, risk of lifting the ban on restricted stocks, and falling customer unit prices.
