20150612-JEFFERIES-大家乐集团（0341）：LIMITED_EARNINGS_UPSIDE_ON_COST_PRESSURES；MAINTAIN_HOLD-348439

Our recent communication with management suggests that CDC continues to maintain a healthy SSSG but faces rising cost pressure as we expected.We like its strong operations，execution and multi-brand model，but see limited nearterm earnings upside due to cost pressure.We maintain our earnings estimates，roll over valuation and raise PT to HKD28 from HKD26.Maintain Hold.We roll over valuation and raise PT to HKD28 from HKD26，based on 23x 12M forward PE（unchanged）.Maintain Hold.CDC trades at 24x 12m forward PE vs the historical median of 23x and at a premium to Greater China restaurants（21x）.The stock has outperformed the HSI by 2% in the past month but has underperformed by 10% in the past 3 month.Risks：Intensifying competition；deceleration in SSSG；sharp staff/rental cost hike.Catalysts：strong SSSG；slowdown in staff/rental cost hike；lower-than-expected margin pressure.