DPC DASH Ltd (ASX: 01405) shares surged more than 7%. At the time of writing, the stock was up 7.2% to HK$31.58, with a turnover of HK$10.18 million.

Positive Analyst Coverage and Expansion Outlook

The rise follows a recent report from CLSA initiating coverage on the company with an "Outperform" rating and a target price of HK$49. The report noted that new stores in second-tier cities have now become the company's core growth engine, accounting for 61% of its store count as of 2025, with this proportion still rising. Compared to its peers, DPC Dash currently has a smaller store base, which indicates it possesses more significant long-term potential for store network expansion. CLSA's calculations suggest the company has the potential to open a total of 3,572 stores across first and second-tier cities, pointing to broad medium to long-term growth prospects.

Strong Financial Performance for 2025

DPC Dash's 2025 financial report shows full-year revenue grew 24.8% to RMB 5.382 billion, marking the fifth consecutive year of double-digit growth and demonstrating strong momentum. The group's adjusted net profit surged 43.3% to RMB 188 million, with profit growth outpacing revenue growth by nearly 20 percentage points. Adjusted EBITDA increased 28.2% to RMB 635 million, indicating the company's profitability has reached a new level.

Rapid Store Network Growth

By the end of 2025, the company's total number of stores reached 1,315, a net increase of 307 stores representing a significant growth of 30.5%. Throughout the year, it entered 21 new cities, expanding its city coverage from 39 at the beginning of the year to 60. This scale has propelled it to become the third-largest international market for Domino's globally.