KGI Investment Consulting pointed out that based on the four reasons of continuous heating up of domestic demand and consumption, further consolidation of the industry, recovery of business operations in the mainland, and opportunity to improve the evaluation of individual stocks in the US market with a low penetration rate, the catering industry is expected to continue to recover. Products (2727) was included in the research scope, and the investment rating was given as “buy”, and the reasonable price was estimated at 416 yuan.
Wangpin is the largest chain restaurant group in Taiwan. In addition to benefiting from the recovery of Taiwan’s domestic consumption, KGI believes that Wangpin’s brands and catering categories are diverse, ranging from cheap to high-end. In addition, the extensive membership system can provide a stable return rate. Profit will continue to grow after hitting a record high in 2023, and the market will further increase profit forecasts, which will drive evaluation upwards.
Benefiting from the recovery of domestic passenger flow and the emergence of benefits from major road operation adjustments, Wang Pin’s operating profit margin in the first quarter increased by 5.4 percentage points year-on-year to 8.9%, driving a 209% year-on-year increase in profit to 5.01 yuan. KGI is optimistic that the disposable income of Taiwanese people will remain high, and the consumption momentum of domestic demand can be further sustained. In addition, Wangpin will accelerate its store opening in mainland China and Taiwan, which will assist its profit performance. The legal person estimates that Wangpin’s EPS in 2023 will increase by 248% year-on-year to 17.94 yuan, a record high.
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