Haitong Securities released a research report stating that Yudashi Shares (01405) has an “superior to the market” rating. The revenue for 2024-26 is estimated to be RMB4.09 billion, RMB5.22 billion, and RMB6.58 billion, respectively, up 34%, 28%, and 26% year-on-year; adjusted net profit is RMB40 million, $120 million and RMB260 million respectively, with adjusted net interest rates of 1.1%, 2.3% and 4%, respectively, with a reasonable value of HK$68.0-74.8 per share.
The report cites the company's 2023 performance, with revenue of 3.05 billion yuan, up 51% year on year; gross profit margin of 72.6%, down 0.2 pct year on year; adjusted net profit of 0.1 billion yuan, achieving profit for the first time in the year; adjusted EBITDA reached 300 million yuan, up 118% year on year, and adjusted EBITDA profit margin of 9.9%, up 3 pcts year on year. The company guidelines are to open 240 stores in 2024 and 300-350 stores each in 2025-26. This is an increase compared to the prospectus guidelines for opening 200-300 rooms each in 2025-26. As of March 22, the company has opened 55 stores in 2024, another 35 stores are under construction, and 88 stores have been signed or approved, accounting for more than 74% of the annual store opening plan.