Re: Cafe de Coral 341
Posted: Wed Jun 26, 2019 1:09 pm
CAFE DE CORAL H(341)
Analysis:
The Group is principally engaged in the operation of quick service restaurants and institutional catering, fast casual and casual dining chains, as well as food processing and distribution business.
The Group release its annual result, where the revenue grew by 0.7% to HKD 8.49 billion, whereas the net profit increase significantly by 28.9% to HKD 590 million, thanks to good cost control.
As of 31 Mar 2019, the number of store of QSR and Institutional Catering was 298. Besides the brand “Café de Coral”, The Spaghetti House, Shanghai Lao Lao, Mixian Sense, Super Super Congee & Noodles were also the brands of the Group.
The same store sales growth of Super Super Congee & Noodles reached 2% this year, with Meal Delivery Service implemented at dinner in 28 branches, in order to improve customer satisfaction.
In addition, the business in Mainland China was excellent too. The revenue was up by 7% to HKD 1.15 billion, while the same store sales was 2%.
The number of stores as of the period was 107, increased by 16. The Group will focus on Greater Bay Area in the future, especially Guangzhou and Shenzhen.
Strategy:
Buy-in Price: $23.30, Target Price: $26.50, Cut Loss Price: $21.50
Source: Phillips
Analysis:
The Group is principally engaged in the operation of quick service restaurants and institutional catering, fast casual and casual dining chains, as well as food processing and distribution business.
The Group release its annual result, where the revenue grew by 0.7% to HKD 8.49 billion, whereas the net profit increase significantly by 28.9% to HKD 590 million, thanks to good cost control.
As of 31 Mar 2019, the number of store of QSR and Institutional Catering was 298. Besides the brand “Café de Coral”, The Spaghetti House, Shanghai Lao Lao, Mixian Sense, Super Super Congee & Noodles were also the brands of the Group.
The same store sales growth of Super Super Congee & Noodles reached 2% this year, with Meal Delivery Service implemented at dinner in 28 branches, in order to improve customer satisfaction.
In addition, the business in Mainland China was excellent too. The revenue was up by 7% to HKD 1.15 billion, while the same store sales was 2%.
The number of stores as of the period was 107, increased by 16. The Group will focus on Greater Bay Area in the future, especially Guangzhou and Shenzhen.
Strategy:
Buy-in Price: $23.30, Target Price: $26.50, Cut Loss Price: $21.50
Source: Phillips