20240326-交银国际证券-九毛九-09922.HK-怂火锅势头强劲；加盟模式是潜在利润扩张引擎_8页_402kb

Summary of JUMAOJIU INTERNATIONAL (9922HK) Report

2023 Performance

The company's 2023 financial results exceeded 2021 peaks and set new records, with revenue growing 49% to 5986 billion RMB and net profit rebounding by 820% to 453 billion RMB. Key margin improvements include a 642% gross profit rate, driven by operating leverage despite competitive pressures. Brand-wise, Tai Er grew 44%, while Song Hot Pot surged 210%, contributing significantly to overall performance.

Key Highlights

• Tai Er and Song Hot Pot lead growth, with franchise models being trialled to expand reach, particularly in underserved areas like Xinjiang and海外市场. New concepts, such as "Shan Wai Mian" acid hot pot, aim for quick ROI through partnerships.
• Ninth-month performance showed strong growth in these new brands, offsetting minor declines in older ones.
• The franchise approach is low-risk and may accelerate expansion, with stores expected to cap at 3-5 per management team.

Financial Projections for 2024

Guidance anticipates "small single-digit sales growth" due to high year-over-year comparisons, primarily from new store openings. Plans include opening 80-100 Tai Er and 35-40 Song Hot Pot units in China, alongside no specific franchise targets. Analysts maintain a "Buy" recommendation, with a 40% CAGR projected for 2024-26 and a target price of 99 HKD (based on 163x 2024-25 average PE).

Analyst Disclosures and Disclaimer

The report includes mandatory disclosures on business relationships, conflicts of interest, and legal limitations on distribution. Key points involve the disclaimer on data accuracy, confidentiality, and potential interests in companies covered, as well as risks related to market conditions.