DPC Dash Limited (1405) AI Stock Analysis

• Market Cap: HK$10.65B
• Dividend Yield: N/A
• Average Volume (3M): 311.23K
• Price to Earnings (P/E): 89.6
• Beta (1Y): 0.66
• 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: 131,209,060
• 10 Day Avg. Volume: 275,744
• 30 Day Avg. Volume: 311,233
• 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$125.00
• Price Target Upside: 61.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: HK$79.00 ▲(2.00% Upside)

The overall stock score of 51 reflects a mixed outlook for DPC Dash Limited. The company's financial performance is solid, with good revenue growth and operational efficiency. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation. The lack of dividend yield further detracts from the stock's appeal.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business model, supporting long-term sustainability and expansion.

Operational Efficiency

Stable margins demonstrate effective cost management and operational efficiency, which are crucial for maintaining profitability and competitive advantage.

Balance Sheet Health

A balanced debt-to-equity ratio suggests prudent financial management, providing flexibility for future investments and resilience against economic fluctuations.

Negative Factors

Free Cash Flow Decline

Declining free cash flow may limit the company's ability to invest in growth opportunities and could strain financial resources if not addressed.

Net Profit Margin

A low net profit margin indicates potential inefficiencies or cost pressures, which could impact long-term profitability and shareholder returns.

Gross Profit Margin Decline

Decreasing gross profit margins suggest rising costs or pricing pressures, which could erode profitability if not managed effectively.

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 its diverse range of delivery services. The company charges fees for domestic and international parcel deliveries, with pricing structures that vary based on weight, distance, and service speed. Key revenue streams include e-commerce partnerships, where DPC Dash provides logistics solutions for online retailers, and corporate contracts for businesses requiring regular courier services. Additionally, the company may benefit from strategic partnerships with technology firms that enhance its operational capabilities, thereby attracting more clients and increasing its market share.

DPC Dash Limited Financial Statement Overview

Summary

DPC Dash Limited demonstrates solid revenue growth and operational efficiency, with stable EBIT and EBITDA margins. The balance sheet is well-managed, with a reasonable debt-to-equity ratio and a healthy equity ratio. However, the decline in free cash flow growth and the need for improved net profit margins highlight areas for improvement.

Income Statement

DPC Dash Limited shows a positive revenue growth rate of 6.01% TTM, indicating a healthy expansion in sales. The gross profit margin is moderate at 23.54%, while the net profit margin is relatively low at 2.26%, suggesting room for improvement in cost management. EBIT and EBITDA margins are stable, reflecting operational efficiency. However, the decline in gross profit margin from previous periods highlights potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio is 0.78, indicating a balanced approach to leveraging. Return on equity is modest at 4.81%, suggesting moderate profitability relative to shareholder investment. The equity ratio of 44.64% reflects a solid capital structure, although the company should monitor its debt levels to maintain financial stability.

Cash Flow

Operating cash flow is strong, with a coverage ratio of 0.58, indicating good cash generation relative to net income. However, free cash flow has declined by 7.63% TTM, which could impact future investments. The free cash flow to net income ratio of 0.48 suggests that a significant portion of earnings is being converted into free cash flow, but the negative growth rate is a concern.

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	1.03B	1.65B	839.58M
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: Negative
• Last Price: 77.45
• 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 Negative. The current price of 77.45 is above the 20-day moving average (MA) of 77.04, below the 50-day MA of 81.69, and below the 200-day MA of 90.93, indicating a neutral trend. The MACD of -1.17 indicates Negative momentum. The RSI at 47.31 is Neutral, neither overbought nor oversold. The STOCH value of 27.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:1405.

DPC Dash Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
9658	66 Neutral	HK$7.89B	19.79	5.60%	―	―	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0341	55 Neutral	HK$3.61B	15.53	5.05%	6.49%	-3.45%	-50.11%
1405	51 Neutral	HK$10.65B	89.60	4.88%	―	30.59%	―
0538	47 Neutral	HK$971.47M	81.65	0.38%	7.19%	0.26%	-73.09%
2150	39 Underperform	HK$1.98B	-3.05	-14.61%	―	-11.19%	-22.98%

DPC Dash Limited Corporate Events

DPC Dash Limited Announces Share Option Grant Under 2022 Incentive Plan

DPC Dash Limited, incorporated in the British Virgin Islands, has announced the grant of 394,836 options to four employee participants under its 2022 First Share Incentive Plan. This grant represents approximately 0.30% of the company’s total issued share capital. The options, priced at HK$85.75 per share, will vest equally over four years and have a ten-year exercise period. The announcement highlights that none of the grantees are directors, chief executives, or substantial shareholders, and no financial assistance was provided for the purchase of shares.