DPC Dash Limited (1405) AI Stock Analysis

• Market Cap: HK$11.34B
• Dividend Yield: N/A
• Average Volume (3M): 338.66K
• Price to Earnings (P/E): 94.2
• Beta (1Y): 0.74
• Revenue Growth: 30.59%
• EPS Growth: N/A
• Country: HK
• Employees: 9,160
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.53
• Shares Outstanding: 130,968,730
• 10 Day Avg. Volume: 350,540
• 30 Day Avg. Volume: 338,662
• PEG Ratio: -0.60
• Price to Book (P/B): 4.32
• Price to Sales (P/S): 2.25
• P/FCF Ratio: 21.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$110.48
• Price Target Upside: 26.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 66 Neutral
• Price Target: HK$94.00 ▲(8.05% Upside)

DPC Dash Limited's strong financial performance is the primary driver of its stock score, reflecting robust revenue growth and profitability. However, technical indicators suggest a neutral market sentiment, and the high P/E ratio raises concerns about overvaluation. The absence of a dividend yield further impacts the valuation negatively.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective business strategies, positioning the company for continued expansion in the competitive quick service restaurant sector.

Cash Flow Management

Efficient cash flow management supports sustainable operations and provides flexibility for reinvestment and expansion, enhancing long-term financial stability.

Balance Sheet Strength

A strong balance sheet with reduced leverage and improved equity ratio indicates prudent financial management, which enhances resilience against economic fluctuations.

Negative Factors

Increased Liabilities

Rising liabilities may strain financial resources and limit strategic flexibility, potentially impacting the company's ability to invest in growth opportunities.

EBITDA Margin Decline

A declining EBITDA margin may indicate rising operational costs or inefficiencies, which could erode profitability if not addressed through cost management strategies.

Profit Margin Concerns

While profitability has improved, the low net profit margin suggests limited pricing power or high costs, which could hinder long-term profit growth if not improved.

DPC Dash Limited Business Overview & Revenue Model

Company Description

DPC Dash Ltd, together with its subsidiaries, operates a chain of fast-food restaurants in the People's Republic of China. The company operates a network of Domino's Pizza stores under Domino's brand name. It also offers fast-food products, such as pizza, chicken products, and beverages. The company also produces and sells dough products; and offers warehousing services. In addition, it engages in investment holding activities. The company was formerly known as Dash Brands Ltd. DPC Dash Ltd was incorporated in 2008 and is based in Shanghai, China.

How the Company Makes Money

DPC Dash Limited generates revenue primarily through the sale of pizzas and related food items at its Domino's Pizza outlets across China. The company leverages a franchise model, benefiting from brand recognition and an established customer base. Key revenue streams include direct sales from company-operated stores, franchise fees, and royalties from franchisees. Moreover, DPC Dash capitalizes on its delivery service, which is a significant contributor to its earnings, especially in densely populated urban areas. Strategic partnerships with online delivery platforms and investments in technology to streamline operations and enhance customer engagement further bolster its revenue-generating capabilities.

DPC Dash Limited Financial Statement Overview

Summary

DPC Dash Limited exhibits strong financial health with consistent revenue growth, improved profitability, and efficient cash flow management. The balance sheet reflects a solid equity position and reduced leverage, although liabilities have increased. The company is well-positioned for continued growth, provided it maintains its operational efficiency and manages its financial obligations prudently.

Income Statement

DPC Dash Limited has demonstrated a strong upward trajectory in revenue, with a significant revenue growth rate of 41.45% from 2023 to 2024. The company has improved its net profit margin to 1.28% from a negative in the previous year, indicating improved profitability. The gross profit margin stands at 22.77%, and the EBIT margin is at a healthy 19.96%. These margins reflect efficient operations and cost management. However, the EBITDA margin has decreased, suggesting potential challenges in operational efficiency.

Balance Sheet

The company maintains a stable balance sheet with an improved equity ratio of 46.02% and a reduced debt-to-equity ratio of 0.70, indicating prudent financial management and strong equity base. Return on equity (ROE) improved to 2.46%, reflecting better returns to shareholders. However, the company's total liabilities have increased, which could pose future risks if not managed carefully.

Cash Flow

DPC Dash Limited has shown robust cash flow performance with a free cash flow growth rate of 102.51% and a strong operating cash flow to net income ratio of 14.83, highlighting efficient cash operations. The free cash flow to net income ratio is 8.07, indicating positive cash generation relative to profit. Despite the positive cash flow metrics, attention should be paid to managing capital expenditures to sustain growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.87B	4.31B	3.05B	2.02B	1.61B	1.10B
Gross Profit	1.15B	1.91B	572.31M	1.47B	1.19B	793.55M
EBITDA	514.67M	416.36M	519.11M	223.80M	-101.17M	37.76M
Net Income	110.21M	55.20M	-26.60M	-222.63M	-471.06M	-274.05M
Balance Sheet
Total Assets	5.23B	4.88B	4.15B	3.27B	3.16B	2.65B
Cash, Cash Equivalents and Short-Term Investments	1.02B	1.07B	1.02B	544.46M	656.67M	257.39M
Total Debt	1.81B	1.57B	1.24B	1.89B	1.65B	1.11B
Total Liabilities	2.90B	2.63B	2.05B	2.52B	2.20B	1.57B
Stockholders Equity	2.34B	2.24B	2.10B	753.13M	957.88M	1.07B
Cash Flow
Free Cash Flow	382.11M	445.26M	219.88M	87.61M	147.28M	-54.92M
Operating Cash Flow	802.76M	818.42M	536.09M	298.21M	332.09M	103.54M
Investing Cash Flow	-447.24M	41.61M	-732.12M	-207.23M	-181.74M	-152.41M
Financing Cash Flow	-429.10M	-382.01M	217.08M	-224.57M	242.99M	233.57M

DPC Dash Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 87.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1405, the sentiment is Neutral. The current price of 87 is above the 20-day moving average (MA) of 85.65, above the 50-day MA of 86.05, and below the 200-day MA of 90.54, indicating a neutral trend. The MACD of -0.47 indicates Negative momentum. The RSI at 49.94 is Neutral, neither overbought nor oversold. The STOCH value of 77.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:1405.

DPC Dash Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1405	66 Neutral	HK$11.34B	94.21	4.88%	―	30.59%	―
9658	66 Neutral	HK$9.38B	21.53	6.06%	―	―	―
0341	61 Neutral	HK$3.73B	15.95	8.52%	6.15%	-1.42%	-28.96%
0538	57 Neutral	HK$1.11B	93.58	-0.69%	6.27%	0.26%	-73.09%
2150	46 Neutral	HK$2.10B	-3.24	-23.35%	―	-11.19%	-22.98%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

DPC Dash Limited Corporate Events

DPC Dash Limited Reports Strong Interim Results with Significant Profit Growth

DPC Dash Limited announced its unaudited interim results for the six months ending June 30, 2025, showing significant growth in revenue and profitability. The company reported a 27% increase in revenue to RMB 2,593,390,000 and a 504.4% rise in profit attributable to owners, reaching RMB 65,924,000. The results highlight improved operational efficiency and profitability, with store-level operating profit and adjusted EBITDA margins showing positive trends. These financial outcomes indicate a strong performance and potential positive impact on stakeholders, reinforcing the company’s competitive positioning in the market.

The most recent analyst rating on (HK:1405) stock is a Hold with a HK$101.00 price target. To see the full list of analyst forecasts on DPC Dash Limited stock, see the HK:1405 Stock Forecast page.