# Futuo Niuniu is used for employment #
According to the profit forecast issued by 00341.HK on October 24, 2023, the group expects to record a profit attributable to shareholders of about HK $200 million in the six months to September 30, 2023, an increase of about 83% over the same period last year.
Core viewpoints
The company has recovered well in the service industry in Hong Kong and the mainland, and its profits have improved greatly.
During the epidemic, the passenger flow, overturning rate and profits of the catering industry decreased. With the recovery, the company has steadily expanded stores, and the same store and overall revenue have increased with the turnover rate. The characteristics of operating leverage of catering enterprises will promote the improvement of the overall profit level. The service sector in Hong Kong and the mainland is recovering well and the company is expected to reverse its performance.
The steady recovery of visitors to Hong Kong has led to the growth of passenger flow.
After the customs clearance between Hong Kong and the mainland, the flow of inbound and outbound passengers recovered rapidly, and the number of visitors to Hong Kong increased significantly. In the first eight months, the number of visitors to Hong Kong exceeded 20 million, of which more than 16 million were from the mainland. the initial number of visitors to Hong Kong in August was about 4.1 million, representing a monthly increase of about 14%. As the leader of Hong Kong chain fast food enterprises, everyone Le will benefit from the stable and orderly recovery of Hong Kong's tourism industry. The recovery of passenger flow will further stimulate income, and the turnover rate will also increase accordingly. Customs clearance between the two places and the recovery of mainland traffic will have a positive impact.
The recovery of the consumer environment in the mainland will boost the company's performance steadily.
Social zero data in August showed that consumption was a bright spot, with strong consumption of travel services and a pick-up in retail sales. The total volume of retail sales of consumer goods increased by 4.6% over the same period last year, and catering revenue increased by 8.4% over the same period last year, driven by the issuance of food and beverage vouchers, the increase in residents' travel and dining activities, and the positive transformation of catering enterprises.
Everyone Le continues to maintain the pace of expanding stores and is expected to get higher returns.
Everyone is happy to expand the store against the trend, and the number of stores continues to increase from 2019 to 2023. In the future, we will focus on improving the efficiency of individual stores and expanding in the mainland, controlling costs, automating and digitally optimizing profit margins. Customs clearance between the two places and the recovery of mainland traffic will increase the turnover rate of the catering industry.
Investment suggestion
In this half year, everyone's profit has been greatly improved, benefiting from the economic recovery and the improvement of the overall profit level of catering enterprises.
And after the customs clearance between the two places, the recovery of the overall flow in the mainland will contribute to the overall turnover of the catering industry. It is expected that in the second half of the fiscal year, everyone will accompany the improvement of the original flow, the turnover rate will further increase, and the follow-up results will continue to improve.
Risk hint
The catering industry is greatly affected by policies; increased competition in the industry; macroeconomic risks.
