Taipa International is a leading and well-known restaurant caterer. It sells fast leisure restaurants under the brands of "Tai Tsai South Mei Dai" and "Tai Tsai San Mi Mi" in Hong Kong, as well as in mainland China, Singapore and Japan. As at the end of March this year, the company had a total of 175 restaurants, including 162 restaurants in Hong Kong, 8 restaurants in mainland China, 4 restaurants in Singapore and 1 restaurant in Japan. Last year, according to Euromonitor, the company accounted for 64.4% of the market share of the noodle specialty stores in Hong Kong.
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Despite being affected by the fifth wave of the epidemic in Hong Kong, Taipa International will still be able to achieve success in 2022 up to the end of March this year. The company's revenue increased by 26.8% to 2.275 billion yuan in 2022, which was due to the increase in the number of restaurants and comparable restaurant income. However, in the last quarter of 2022, there was a great challenge to the fifth wave of the epidemic in Hong Kong, but the company's comparable restaurant revenue from Hong Kong restaurants still increased by 9.6% year-on-year. In 2022, the number of bowls sold per seat per day was 6.3 bowls, and the per capita consumption of overall customers reached 59.8 yuan, compared with 6 bowls and 58.4 yuan respectively in 2021. Excluding one-time listing expenses and government assistance related to the epidemic, the company's operating profit for the whole share increased by 17.8% to 1.65 yuan on a year-on-year basis, equivalent to an operating consolidation rate of 7.3%.
Guotai Junan pointed out that the growth of revenue from online and comparable restaurants will continue to support the company's sales. According to the management policy, young countries will maintain "prudence and self-discipline" in implementing the international plan, with the aim of opening more than 60 new restaurants by the end of 2023. In 2022, despite the repeated outbreaks in various regions and the adoption of epidemic prevention measures, the company still successfully extended its restaurant network to the mainland and Japan, and resumed the process of opening new restaurants in Singapore since November last year. The company's sales in the mainland will mainly focus on large regional cities with a taste similar to that of Hong Kong.
Hong Kong food is in full swing.
In addition, in order to understand the rising cost of raw materials and energy, the company increased its overall menu by 2% in February this year. At the same time, the company continues to add new high-end ingredients and snacks with higher profit rates, such as clover flowers, conch slices and deer antler mushrooms, in order to promote customers. With the gradual lifting of social restrictions in many places, the company's growth in Hong Kong, as well as overseas markets such as Singapore and Japan, should be affected. The internal zero clearance policy and occasional meal restrictions may have a negative impact on the company's planning and planning.
However, the Bank of China still remains committed to the company's great strength in the domestic market, as we have seen a good and persuasive customer response in Shenzhen and Suzhou.
It is expected that Hong Kong International will achieve a higher growth than its Hong Kong counterparts in the coming years. At the same time, under the shadow of the epidemic in 2022, Hong Kong has successfully entered the mainland and Japanese markets, maintained the performance of the restaurant network, and carried out the planning of "prudence and self-discipline" at a reasonable speed has been validated. Of course, it will take time to restore the sentiment of the Hong Kong restaurant market and the confidence of consumers, but the relevant government assistance and consumer vouchers will be helpful to the growth of the restaurant industry in Hong Kong. In addition, the company's dividend payout rate is reasonable and cash flow remains healthy. However, the prevention and control measures of the epidemic situation in the interior will continue to affect the company's planning and planning of the restaurant industry. At present, the investment level is "input", and the target is 4.15 yuan. PM