Walter Woo, an analyst from CMB International Securities, maintained the Buy rating on DPC Dash Limited (1405 – Research Report). The associated price target is HK$118.57.
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Walter Woo’s rating is based on a combination of factors that highlight DPC Dash Limited’s robust growth potential despite some short-term challenges. The company’s management has set an ambitious target of opening 300 new stores in FY25, reflecting a 30% year-over-year growth, which is supported by the brand’s strong reputation and successful entry into new cities. This expansion strategy is expected to drive long-term growth, even though there may be some short-term sales fluctuations due to macroeconomic uncertainties and sales cannibalization in new markets.
Despite these challenges, the company’s overall financial outlook remains positive. The operating profit margin is projected to remain stable, while the net profit margin is anticipated to improve due to economies of scale and a favorable tax rate. Furthermore, the company’s sales and adjusted net profit are expected to grow significantly faster than its peers, justifying the premium valuation. These factors collectively underpin Woo’s confidence in maintaining a Buy rating for DPC Dash Limited.
According to TipRanks, Woo is a 3-star analyst with an average return of 2.7% and a 54.26% success rate. Woo covers the Consumer Cyclical sector, focusing on stocks such as Yum China Holdings, ANTA Sports Products, and Xtep International Holdings.