CISI FIN released a research report stating that DPC DASH (01405) entered 9 new cities in the first half of the year and continued to expand its store network through densification in both new and existing cities. During the period, same-store sales performance in tier-1 cities was excellent, while the structural same-store decline impact from entering more new markets is being continuously digested. The company's profitability continues to improve. The firm is optimistic about the company's high growth potential and expects DPC DASH's operating revenue for 2025/2026/2027 to be RMB 5.54/7.05/8.81 billion, representing year-on-year growth of 28.4%/27.2%/25.1%. Net profit is projected at RMB 155/259/430 million, with net profit margins of 2.8%/3.7%/4.9%. The "BUY" rating is maintained.

CISI FIN's main viewpoints are as follows:

H1 2025 Performance Meets Expectations

The company's H1 2025 operating revenue was RMB 2.59 billion, up 27.0% year-on-year. Store-level operating profit reached RMB 380 million, up 28.0% year-on-year, with store-level operating profit margin at 14.6%, up 0.1 percentage point year-on-year. Net profit attributable to shareholders was RMB 6.6 million, up 504.4% year-on-year, with net profit margin at 2.5%, up 2.0 percentage points year-on-year. Adjusted net profit after adding back equity expenses was RMB 91 million, up 79.6% year-on-year, with adjusted net profit margin at 3.5%, up 1.0 percentage point year-on-year.

Continuous Optimization of Store and Headquarters Costs

In H1 2025, the company's raw material costs, employee costs, right-of-use asset depreciation, variable lease costs, store operating and maintenance costs, and fixed asset depreciation as a percentage of revenue were 27.3%, 33.8%, 7.3%, 2.7%, 6.1%, and 4.8% respectively, representing changes of -0.1, -1.0, +0.1, flat, -0.2, and -0.1 percentage points year-on-year. During the period, both store operating profit margin and group net profit margin continued to improve.

Maintaining Aggressive Store Expansion Pace

In H1 2025, the company achieved a net increase of 190 stores, with total stores reaching 1,198 by the end of the period, distributed across 48 cities nationwide. Nine new cities were entered during the first half. As of H1 2025, tier-1 cities had a total of 515 stores, representing a net increase of 6 compared to the end of 2024, while other markets had 683 stores, a net increase of 184 compared to the end of 2024. The company's full-year plan of opening 300 stores remains unchanged, maintaining an aggressive expansion pace in the first half.