Professional
Added to YB: 2024-05-06
Pitch date: 2024-05-03
1405.HK [bullish]
DPC Dash Ltd
+33.53%
current return
Author Info
Meditation Capital is a global long-only fund with a focus on investing in quality companies with exceptional products. Their goal is to generate high rates of return while striving to continually maintain safety of principal. Sign up for the newsletter.
Company Info
DPC Dash Ltd, together with its subsidiaries, operates a chain of fast-food restaurants in the People’s Republic of China.
Market Cap
HKD 13.0B
Pitch Price
HKD 58.00
Price Target
70.72 (-9%)
Dividend
N/A
EV/EBITDA
18.68
P/E
236.96
EV/Sales
3.13
Sector
Hotels, Restaurants and Leisure
Category
growth
Meditation Capital Portfolio Holding: DPC Dash Ltd
DPC Dash - Domino's Pizza China franchise with 835 stores. New mgmt in '17 dramatically improved ops; same-store sales +16% in '23. Huge growth potential: KFC has 10.6k China stores, Pizza Hut 3.4k vs Domino's 835. Trades at 10x '25 EBITDA, 7x '26. Risks: competition, macro; mitigated by strong unit econ & brand. Upside: mgmt sees 5k stores LT. DPZ invested $80M, is bullish. Liquidity low but should improve. 23% base case IRR.
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