HK 第11部分; Yum China is not Domino's
Yum China is high up on the radar for investors in HK/Chinese stocks. Lesser-known Domino's franchisee, DPC Dash, aims to challenge Yum's Pizza Hut for the #1 spot in the pizza sub-category.
Introduction
Today’s post offers three items;
DPC Dash write-up; This post is a follow-up to; HK 第4部分; Yum China is not Yum! Brands, which received a lot of response. Yum China Holdings #YUMC / $9987.hk is clearly one of the best-followed stocks among #fintwit and substack readers….and for good reasons. Yum China is not the only western restaurant franchisee with a Hong Kong stock listing though. Domino’s Pizza’s #DPZ exclusive master franchisee in Greater China also has a listing. That company is DPC Dash $1405.hk.
If you believe in the Domino’s brand and the pizza opportunity in China, you should keep a close eye out $1405. It is one of DPZ’s fastest growing franchisees, holding many of the most-productive stores in the Domino’s system. From the 2024/03/27 earnings call; “we now hold all of the top-19 spots of the top-20 spots for first 30-day sales among Domino's stores globally” … and the ambitions are high; “our goal is to become the number-one pizza company in China, as other Domino’s Pizza’s franchisees have done in Asia, Europe and North America.”
Financial models; I write about my Hong Kong (sub-)portfolio and the overall portfolio for Founding subscribers in the Founders section. That is also the home for other exclusive content such as the financial models on DPC Dash (for founders only) and Yum China (for all paying subscribers).
(Click on the respective underscored links to go to the posts with the download links)
I updated the Yum China model template with your feedback. Thank you for that! The major change is the inclusion of the modeling option to model either with a) Incremental EBITDA-margin (the profit margin on each additional dollar of revenue) or b) EBITDA-margin (EBITDA divided by Revenue).
Please note, that the models require a) Iterations to be turned on, and b) English-style settings » File > Options > Advanced > ((un)check) Apply system separators.
Pak Fah Yeow write-up; Personally, I (currently) find the most absurdly cheap stocks among the local brands/companies, particularly in the smaller market cap ranges. I wrote about one such stock as an exclusive/priority post for Founding subscribers. Today I am opening up access to the analysis on Pak Fah Yeow $239.hk to all paying subscribers » here.
