Investment Rating - The investment rating for Chow Tai Fook (1929.HK) is not explicitly stated in the provided documents, but the report indicates a cautious outlook due to declining sales and market conditions [3][4]. Core Insights - Chow Tai Fook's retail value for FY2025Q1 decreased by 20% year-on-year, with significant declines in both mainland China and Hong Kong/Macau markets [3][4]. - The report highlights that the fluctuation in gold prices has led to a cautious consumer sentiment, impacting sales performance across various channels [4]. - The average selling price of gold and embedded products has increased, attributed to rising gold prices and resilient sales of high-priced items [5]. Summary by Sections Sales Performance - For FY2025Q1, the retail value in mainland China and Hong Kong/Macau fell by 18.6% and 28.8% respectively, accounting for 87.8% and 12.2% of total retail value [3]. - Same-store sales in mainland China and Hong Kong/Macau declined by 26.4% and 30.8% respectively, with same-store volumes dropping by 36.5% and 36.1% [3][4]. Market Conditions - The report notes that gold prices have been at historical highs with significant volatility since April, leading to weakened performance in both mainland China and Hong Kong/Macau [4]. - The same-store sales decline in Hong Kong/Macau is more pronounced compared to mainland China, with franchise performance generally better than direct sales [4]. Pricing Trends - The average selling price for gold jewelry in mainland China and Hong Kong/Macau increased to 6200 HKD and 8900 HKD respectively, compared to 5400 HKD and 8400 HKD in FY2024Q1 [5]. - The average selling price for embedded jewelry also saw an increase, indicating a shift towards higher-priced products amidst fluctuating gold prices [5]. Financial Forecast - Revenue projections for FY2025 to FY2027 are estimated at 1055 billion HKD, 1092 billion HKD, and 1118 billion HKD, with a year-on-year growth of -3%, +3%, and +2% respectively [6]. - The net profit attributable to the parent company is forecasted to be 68.57 billion HKD, 71.31 billion HKD, and 73.07 billion HKD for the same period, reflecting a growth of 5%, 4%, and 2% [6].

Investment Rating - The report maintains a rating of "Buy" for Chow Tai Fook (1929 HK) with a target price of HKD 10.80, corresponding to an 18x PE ratio [2][7]. Core Views - Chow Tai Fook's retail sales decreased by 20.0% year-on-year in FY25Q1, primarily due to short-term fluctuations in gold prices affecting consumer demand. However, with gold prices stabilizing and consumer sentiment improving, retail sales growth is expected to recover [2][3]. - The company is actively optimizing its channel and product structure, focusing on enhancing the sales of gold products, particularly those sold by weight, which saw a sales increase of over 100% year-on-year in Q1 [2][3]. - The competitive landscape in the jewelry industry is intensifying, prompting Chow Tai Fook to slightly optimize its channels to better adapt to future developments [4]. Summary by Sections Sales Performance - Chow Tai Fook's retail sales in mainland China and Hong Kong/Macau declined by 18.6% and 30.8% year-on-year, respectively. Same-store sales growth (SSSG) for mainland China was -26.4% and for Hong Kong/Macau was -30.8% [3]. - The sales of higher-margin gold products in mainland China increased significantly, with their proportion of total sales rising by 10.1 percentage points to 15.8% [3]. Channel Optimization - In FY25Q1, Chow Tai Fook closed 185 stores and opened 89, resulting in a net closure of 95 stores. The total number of stores reached 7,504 in mainland China and 375 in Hong Kong/Macau [4]. - The company is focusing on improving single-store sales and profitability amid a challenging retail environment [4]. Financial Projections - The forecasted net profit attributable to shareholders for FY25 is HKD 5.986 billion, with expected growth in subsequent years [6]. - Chow Tai Fook's dividend yield for FY25 is projected to be 6.4%, indicating a favorable cost-benefit ratio for investors [5].

Investment Rating - The investment rating for the company is "Buy" (maintained) [3][12] Core Views - The company's retail value for FY2025 Q1 decreased by 20.0% year-on-year, impacted by macroeconomic conditions and fluctuations in gold prices [4][5] - The forecast for net profit for FY2025-2027 has been adjusted to 6.685 billion (-5.91 million), 7.233 billion (-9.44 million), and 7.991 billion (-12.29 million) HKD, with corresponding EPS of 0.67 (-0.06), 0.72 (-0.09), and 0.80 (-0.12) HKD [4] - The current stock price corresponds to a PE ratio of 11.8, 10.9, and 9.9 for FY2025, FY2026, and FY2027 respectively [4] Summary by Sections Retail Performance - In mainland China, FY2025 Q1 retail value decreased by 18.6%, accounting for 87.8% of the group's retail value, with same-store sales down by 26.4% [5] - Outside mainland China, FY2025 Q1 retail value decreased by 28.8%, with same-store sales down by 30.8% [5] Operational Focus - The company is focusing on improving operational quality, with a notable sales increase in the newly launched "Chuanfu" series of gold products [6] - The company closed 91 stores in mainland China during FY2025 Q1, ending with a total of 7,284 stores, indicating a strategic shift towards optimizing existing store performance rather than aggressive expansion [6] Financial Projections - Revenue for FY2023 was 94.684 billion HKD, projected to grow to 120.635 billion HKD by FY2027, with a year-on-year growth rate of 5.2% [7] - Net profit for FY2023 was 5.384 billion HKD, expected to reach 7.991 billion HKD by FY2027, reflecting a compound annual growth rate of approximately 10.5% [7] - The gross margin is projected to stabilize around 20.8% from FY2025 onwards, with net margin improving to 6.8% by FY2027 [7]

Investment Rating - The investment rating for Chow Tai Fook is "Buy" with a target price indicating a potential return of over 20% within the next six months [5]. Core Insights - Chow Tai Fook's retail performance in FY25Q1 showed a 20% year-on-year decline in retail sales, with a significant increase in the retail value of fixed-price gold products in mainland China, growing over 100% year-on-year [1]. - The company is focusing on optimizing its retail network by enhancing store productivity and profitability, resulting in the closure of 91 jewelry retail points in mainland China during the quarter [2]. - Same-store sales faced pressure, with declines of 37% in mainland China and 36% in Hong Kong and Macau, while the average selling price of gold products showed stable growth [3]. - The company is adjusting its profit forecasts, expecting revenues of HKD 113.6 billion, HKD 121.4 billion, and HKD 130.3 billion for FY25-27, with net profits of HKD 6.9 billion, HKD 7.6 billion, and HKD 8.5 billion respectively [4]. Summary by Sections Retail Performance - Retail sales in mainland China decreased by 18.6%, while Hong Kong and Macau saw a decline of 28.8% [1]. - The retail value of fixed-price gold products increased significantly, accounting for nearly 16% of total sales, up 10 percentage points year-on-year [1]. Product and Channel Analysis - In mainland China, gold products accounted for 76.9% of sales, with a stable average selling price increase of HKD 800, reaching HKD 6,200 [3]. - The online retail value represented 5.8% of total sales, with sales volume at 13.8% [1]. Financial Projections - The expected earnings per share (EPS) for FY25-27 are HKD 0.69, HKD 0.76, and HKD 0.85, with corresponding price-to-earnings (PE) ratios of 11, 10, and 9 times [4].

Investment Rating - The report maintains a rating of "Buy" for Chow Tai Fook (1929) [1][3]. Core Views - The operating performance for FY2025 Q1 met expectations, with a significant increase in the contribution from priced gold, which doubled in growth. The report anticipates an improvement in profit margins for FY2025 due to the rising contribution from priced gold and inventory appreciation from higher gold prices [2][3]. Summary by Sections Financial Performance - The company expects net profit attributable to shareholders for FY2025, FY2026, and FY2027 to be HKD 74.20 billion, HKD 82.09 billion, and HKD 90.85 billion respectively, with corresponding EPS of HKD 0.74, HKD 0.82, and HKD 0.91. A PE ratio of 15 times is applied for FY2025, resulting in a target price of HKD 11.13 [3]. - For FY2025 Q1, the retail value decreased by 20.0% year-on-year, with a decline of 18.6% in mainland China and 28.8% in Hong Kong, Macau, and other markets. Same-store sales in mainland China and Hong Kong also saw declines due to high gold price volatility affecting demand [3]. Product Performance - The demand for gold jewelry has shown a temporary slowdown due to high price volatility, while priced gold products have benefited from exquisite design and craftsmanship, leading to a year-on-year retail value increase of over 100% in mainland China for FY2025 Q1. The contribution of priced gold retail value rose from 6% in FY2024 Q1 to 16% in FY2025 Q1 [3]. - In terms of product categories, same-store sales for embedded jewelry, platinum, and K-gold jewelry in mainland China decreased by 31.7%, while the average selling price increased from HKD 7,800 to HKD 8,600. Gold jewelry and products saw a same-store sales decline of 27.9%, with average selling prices rising from HKD 5,400 to HKD 6,200 [3]. Market Data - The current stock price is HKD 7.91, with a market capitalization of HKD 79,003 million. The stock has traded between HKD 7.91 and HKD 13.54 over the past 52 weeks, with a total share count of 9,988 million [4].

Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [1][10]. Core Views - The company reported a significant decline in overall retail value by 20% year-on-year for the period of April to June 2024, with the Chinese market (excluding Hong Kong, Macau, and Taiwan) experiencing an 18.6% decline [3][4]. - The company is focusing on optimizing its product structure, with a notable increase in the sales proportion of high-margin priced products from 5.7% to 15.8% in the Chinese market (excluding Hong Kong, Macau) [3][7]. - The company continues to adjust its store network, closing 95 stores during the quarter, resulting in a total of 7,659 stores at the end of the period [3][8]. - Despite short-term sales pressure, the long-term outlook for the gold and jewelry industry remains stable, supported by consumer demand for value preservation and continuous improvement in product design [10]. Summary by Sections Retail Performance - The retail value in the Chinese market (excluding Hong Kong, Macau) decreased by 18.6%, with same-store sales down by 26.4%. In Hong Kong, Macau, and other markets, retail value fell by 28.8%, with same-store sales declining by 30.8% [3][4]. Store Network Adjustment - The company is implementing a strategy to enhance single-store efficiency, resulting in the closure of 95 stores, including 91 under the main brand and 4 under other brands [3][8]. Financial Forecast - The company's net profit forecasts for the fiscal years 2025-2027 have been revised down to HKD 7.038 billion, HKD 7.682 billion, and HKD 8.362 billion, respectively, with corresponding P/E ratios of 11.2, 10.3, and 9.5 [3][10].

Investment Rating - Maintain "Buy" rating [1][3] Core Views - Short-term demand fluctuations, with FY2025 Q1 RSV down 20% YoY [1] - Mainland RSV down 18.6% YoY, while Hong Kong, Macau, and other markets down 28.8% YoY [1] - FY2025 revenue expected to remain flat, with single-digit growth in net profit attributable to shareholders [1] - Adjusted FY2025-2026 net profit forecast to HKD 7,001/7,800/8,684 million, with FY2025 PE at 11x [1] Financial Performance - FY2024 revenue: HKD 108,713 million, up 14.8% YoY [2] - FY2024 net profit attributable to shareholders: HKD 6,499 million, up 20.7% YoY [2] - FY2025E revenue: HKD 109,550 million, up 0.8% YoY [2] - FY2025E net profit attributable to shareholders: HKD 7,001 million, up 7.7% YoY [2] - FY2025E EPS: HKD 0.70, up 7.7% YoY [2] Market and Operations - As of June 2024, the company operates 7,429 Chow Tai Fook jewelry stores globally (7,284 in Mainland China, 87 in Hong Kong and Macau, and 58 in other markets) [1] - Net closure of 91 Chow Tai Fook stores in Mainland China during April-June 2024 [1] - Focus on optimizing store structure and improving single-store operations [1] - Pricing products sales ratio increased from 5.7% to 15.8% YoY in FY2025 Q1 [1] Product Performance - Gold jewelry and products same-store sales down 27.9% YoY in April-June 2024 [1] - Jewelry inlaid, platinum, and K-gold jewelry same-store sales down 31.7% YoY in April-June 2024 [1] - Pricing products sales performance strong, partially offsetting the weak performance of weight-based products [1] Valuation Metrics - FY2025E P/E: 11.3x [2] - FY2025E P/B: 2.3x [2] - FY2025E ROE: 21.0% [2] - FY2025E ROIC: 13.0% [2] Stock Information - Industry: Other Retailers [3] - Closing price on July 23, 2024: HKD 7.91 [3] - Market capitalization: HKD 79,003.00 million [3] - Total shares outstanding: 9,987.74 million [3] - 30-day average trading volume: 11.32 million shares [3]

Financial Performance - Revenue increased by 14.8% to HK$108,713 million, or by 18.5% on a constant exchange rate basis[9] - Core operating profit increased by 28.9% to HK$12,163 million[9] - Core operating profit margin improved by 120 basis points to 11.2%[9] - Revenue for the year ended 31 March 2024 is HKD 108,713 million, with a gross profit of HKD 22,285 million[16] - Core operating profit for the year ended 31 March 2024 is HKD 9,439 million, with a core operating profit margin of 10.0%[16] - Net profit margin for the year ended 31 March 2024 is 5.8%, with a full year dividend payout ratio of 92.9%[16] - Revenue increased by 14.8% to HK$108,713 million in FY2024[30] - Core operating profit (COP) grew by 28.9% to HK$12,163 million, with an operating margin of 11.2%[30] - Profit attributable to shareholders rose by 20.7% to HK$6,499 million, with earnings per share of HK$0.65[30] - The Board proposed a final dividend of HK$0.30 per share, bringing the full-year dividend to HK$0.55 per share, with a payout ratio of 84.6%[30] - Revenue increased by 14.8% to HK$108,713 million in FY2024, with constant exchange rate growth reaching 18.5%[87][88] - Mainland China revenue grew by 9.9%, contributing 82.5% to the Group's total revenue, with constant exchange rate growth of 14.1%[88] - Hong Kong, Macau, and other markets revenue surged by 45.6% due to the recovery in inbound tourism[88] - Gold jewellery and products revenue increased by 22.5%, contributing 82.0% to the Group's revenue, up by 510 basis points[91][92] - Gem-set, platinum, and K-gold jewellery revenue declined by 13.3% due to macroeconomic challenges, but quality jewellery remained favored by customers[92][93] - Adjusted gross margin decreased by 90 basis points to 22.8%, partially offset by optimized pricing strategies and rising gold prices[85] - Main operating profit increased by 28.9% to HK$12,163 million, with the operating profit margin rising by 120 basis points to 11.2%[85] - The Group's net profit attributable to shareholders grew by 20.7%, despite unrealized losses from gold borrowing due to gold price fluctuations[85] - Core operating profit for FY2024 increased by 28.9% YoY to HK$12,163 million, with a margin of 11.2%[99] - Adjusted gross profit margin decreased by 90 basis points to 22.8% in FY2024, mainly due to higher sales contribution from gold jewellery and wholesale business[104] - Unrealised loss on gold loans amounted to HK$2,489 million as of 31 March 2024, due to timing differences in gold price fluctuations[103] - Revenue for 2HFY2024 increased by 22.9% YoY to HK$59,187 million, while adjusted gross profit rose by 8.5% to HK$12,988 million[98] - Mainland China contributed over 85% of the Group's core operating profit in FY2024[98] - SG&A expenses as a percentage of revenue decreased by 3.0 percentage points to 12.1% in 2HFY2024[98] - Profit attributable to shareholders increased by 20.7% in FY2024, partially offset by unrealised losses on gold loans[99] - The Group's core operating profit margin expanded to 12.1% in 1HFY2024, up 2.8 percentage points YoY[98] - Adjusted gross profit for 1HFY2024 increased by 12.9% YoY to HK$11,786 million, with a margin of 23.8%[98] - The average London gold price for FY2024 showed a YoY increase, impacting the Group's gold inventory valuation[105] - SG&A expenses decreased by 2.9% to HK$13,300 million, with the SG&A ratio improving by 230 basis points to 12.2%[107] - Revenue in Mainland China increased by 9.9% to HK$89,698 million, with wholesale revenue growing by 15.1% (19.6% on a constant exchange rate basis)[108] - The company had 5,679 franchised CHOW TAI FOOK JEWELLERY POS as of 31 March 2024, contributing approximately 63% of wholesale revenue in Mainland China[109] - SSSG of gold jewellery and products was strong at 6.4%, with ASP increasing to HK$5,600 (FY2023: HK$5,200)[112] - ASP of gem-set jewellery increased to approximately HK$8,100 (FY2023: HK$7,600)[113] - Adjusted gross profit margin decreased by 80 basis points in FY2024, primarily due to higher sales contribution from wholesale business and gold jewellery and products[115] - Wholesale business mix increase led to a 70 basis points drop in adjusted gross profit margin, while gold jewellery and products revenue mix surged to 82.5% (FY2023: 77.8%)[115] - Core operating profit increased by 23.4% in 1HFY2024 and 16.1% in 2HFY2024, with core operating profit margin improving by 2.5 percentage points in 1HFY2024[114] - Adjusted gross margin decreased by 80 basis points in FY2024, primarily due to the increased contribution from wholesale business and gold jewelry sales, which offset the improvement in retail product gross margin[116] - Wholesale business gross margin is lower than retail. In FY2024, the increased wholesale mix led to a 70 basis points decline in adjusted gross margin. The surge in gold jewelry demand pushed its revenue mix to 82.5% (FY2023: 77.8%), resulting in a 120 basis points decline in adjusted gross margin[116] - SG&A ratio was 11.4% for the period ended 31 March 2024, with fixed expenses contributing around 50% to SG&A expenses in FY2024 (FY2023: approximately 45%)[116][117] - Core operating profit margin increased by 90 basis points to 11.7% in FY2024[116] - Staff costs and related expenses decreased slightly by 0.3% in FY2024, with fixed component increasing 3.8% YoY due to annual salary increments, while the variable component decreased 3.9% due to adjustments in back-office staff remuneration[117][118] - Concessionaire fees ratio declined to 7.7% due to a shift in sales mix towards gold jewelry and products, which generally have lower concessionaire rates[120] - Lease-related expenses ratio decreased slightly by 30 basis points during FY2024[120] - Total retail points (POS) for Chow Tai Fook Jewelry in Mainland China increased to 7,403 as of 31 March 2024, with a net addition of 143 stores during FY2024[122] - Overall retail sales value (RSV) increased by 17.3% YoY in FY2024, driven by a 23.3% increase in gold jewelry and products, while gem-set, platinum, and K-gold jewelry RSV declined by 5.9%[123] - E-commerce RSV grew by 18.8% YoY in FY2024, contributing to the overall RSV growth across all channels[126] - Brick-and-mortar stores accounted for approximately 95% of the company's RSV in Mainland China during FY2024[127] - Mainland e-commerce RSV grew by around 20% in FY2024, with e-commerce share of retail sales volume exceeding 10% and ASP increasing to HK$2,080 (FY2023: HK$1,870)[127] - RSV YoY growth in Tier I cities was +17.7%, Tier II cities +18.1%, Tier III cities +15.5%, and Tier IV cities +17.7% in FY2024[129] - Franchised POS RSV in Mainland China increased by 23.4% YoY in FY2024, with franchised stores comprising approximately 77% of the total store count[133] - The company opened a net of 143 CHOW TAI FOOK JEWELLERY POS in Mainland China during FY2024, primarily in franchised format and located in shopping malls[132] - Stores aged less than two years contributed approximately 65% of overall Mainland RSV per Same Store in FY2024, the highest level in recent years[135] - 2HFY2024 contributed approximately 55% of annual SSS, reflecting normal seasonality post-pandemic[137] - Shopping mall RSV grew by +21.0% YoY in FY2024, with a net increase of 167 POS[131] - Retail revenue surged by 40.4% in FY2024, driven by the return of Mainland tourists, while wholesale revenue increased by 85.6% due to the rebound of duty-free business in Hainan Province[140] - Same-store sales growth (SSSG) in Hong Kong and Macau climbed 42.4% in FY2024, with gold jewellery and products leading at 67.7% SSS growth, supported by a 17.3% increase in ASP to HK$8,100[142] - Adjusted gross profit margin decreased by 130 basis points to 24.4% in FY2024, primarily due to higher sales contribution from gold jewellery and products[146] - Core operating profit escalated by 153.7% to HK$1,654 million in FY2024, with the corresponding margin rising 370 basis points to 8.7%[146] - SG&A ratio decreased by 570 basis points to 16.4% in FY2024, benefiting from favorable operating leverage[146] - Staff costs and related expenses increased by 9.4% in FY2024, but the ratio dropped by 250 basis points to 8.7% due to faster revenue growth[151] - Lease-related expenses increased by 15.3% in FY2024, with the ratio decreasing by 100 basis points to 4.1%[152] - Fixed staff costs rose by 8.7% year-on-year, driven by revisions to staff remuneration packages, while variable staff costs increased by 12.3% due to higher retail revenue[151] - Total retail points increased from 133 in FY2022 to 145 in FY2024, with a net addition of 10 points[155] - RSV (Retail Sales Value) in Hong Kong and Macau surged by 32.0% and 53.2% respectively in FY2024, driven by the recovery of inbound tourism[161][162] - RSV in other markets jumped 118.9% in FY2024, supported by new store openings and strong demand in duty-free shops in Hainan and Southeast Asia[161][162] - Gold jewellery and products saw a significant RSV YoY increase of 69.4%, with weight-based gold products accounting for 84.7% of RSV in FY2024[157][160] - Gem-set, platinum, and K-gold jewellery experienced a RSV YoY decline of 3.7%, while watches saw a 7.0% decrease[157] - Diamond jewellery's share of RSV decreased from 71.0% in FY2023 to 64.4% in FY2024, while other gem-set jewellery increased from 15.5% to 20.2%[158] - Other income decreased by 6.0% YoY to HK$690 million in FY2024, primarily due to lower government grants and commission income[168] - Net foreign exchange loss increased by 4.0% YoY to HK$330 million in FY2024, driven by RMB depreciation[169] - Finance costs on gold loans rose by 41.8% YoY to HK$357 million in FY2024, reflecting higher borrowing costs[170] - Taxation increased by 8.4% YoY to HK$2,121 million in FY2024, driven by higher taxable profits[170] - Bank interest income decreased by 19.6% in FY2024 due to relatively lower average bank deposit balances[171] - Finance costs on gold loans increased by 41.8% in FY2024 due to higher average gold loan outstanding by weight[171] - Net profit margin increased to 6.1%, and ROE rose by 820 basis points to 24.7%[172] - Inventory balances (excluding packaging materials) increased by 9.2% to HK$64,593 million as of 31 March 2024[176][177] - Inventory turnover period reduced by 20 days compared to FY2023, reaching 204 days when excluding franchisee-held inventory[176][177] - Franchised POS held approximately HK$16,535 million or 25.6% of total inventory balances as of 31 March 2024[176][177] - Total borrowings increased by HK$7,683 million, with gold loans rising by HK$9,402 million to HK$24,488 million[178] - Bank deposits and cash equivalents decreased by HK$4,039 million to HK$7,695 million as of 31 March 2024[178] - Net debt increased by HK$11,721 million to HK$20,928 million, representing 78.2% of total equity[178] - RMB depreciation negatively impacted the company's profit due to translation differences between spot and closing exchange rates[183] - Revenue YoY change increased by 14.8% as reported and 18.5% on a constant exchange rate basis for the year ended 31 March 2024[186] - Core operating profit YoY change increased by 28.9% as reported and 33.1% on a constant exchange rate basis for the year ended 31 March 2024[186] - Changes in inventory balances increased by 9.0% as reported and 11.4% on a constant exchange rate basis for the year ended 31 March 2024[186] - Changes in bank deposits and cash equivalents decreased by 34.4% as reported and 31.9% on a constant exchange rate basis for the year ended 31 March 2024[186] - Operating cash flows before movements in working capital increased to HK$15,491 million for the year ended 31 March 2024, up from HK$11,619 million in 2023[188] - Capital expenditure for FY2024 amounted to HK$963 million, a decrease from HK$1,982 million in FY2023[190] - Dividends paid increased to HK$12,538 million for the year ended 31 March 2024, up from HK$5,079 million in 2023[188] - Net cash used in inventories decreased to HK$829 million for the year ended 31 March 2024, down from HK$6,304 million in 2023[188] - Pro forma free cash flows increased to HK$11,064 million for the year ended 31 March 2024, up from HK$6,174 million in 2023[188] - The Group did not have any material contingent liabilities as at 31 March 2024 and 31 March 2023[191] Market and Regional Performance - Revenue in Hong Kong, Macau, and other markets climbed 45.6% year-on-year due to recovery in inbound tourism[9] - Same-store sales growth (SSSG) in Mainland China was +1.8%[14] - Net movement in retail points (POS) in Mainland China was +143, totaling 7,403 stores[14] - Revenue growth in other markets was +42.4%[14] - Mainland China same-store sales growth (SSSG) was 31.9% in 2021, compared to (15.1)% in 2020 and 11.1% in 2022[20] - Mainland China retail sales volume increased from 12,699,000 units in 2020 to 23,774,000 units in 2023[20] - Hong Kong & Macau SSSG showed a significant recovery, reaching 24.7% in 2022 and 18.3% in 2023, compared to (38.7)% in 2020[20] - Total retail points expanded from 3,978 in 2020 to 7,646 in 2023, with Mainland China accounting for 7,510 of the total in 2023[20] - In Mainland China, the company remains confident in the jewellery market due to supportive policies and the Guochao trend, with a GDP growth target of around 5%[35] - In Hong Kong and Macau, store traffic increased, but spending remained prudent, prompting efforts to enhance customer experience across omni-channel touchpoints[35] - The company anticipates opportunities in Southeast Asia from the rising middle class and economic growth, with plans to strategically expand the retail network[36] - SSS (Same Store Sales) in Mainland China increased by 1.8%, while franchised POS sales grew by 7.4% due to the steady ramp-up of younger stores[94] - SSS in Hong Kong and Macau grew by 42.4%, with Hong Kong and Macau individually growing by 40.0% and 50.9% respectively[95] - Mainland China contributed over 85% of the Group's core operating profit in FY2024[98] - The company had 5,679 franchised CHOW TAI FOOK JEWELLERY POS as of 31 March 2024, contributing approximately 63% of wholesale revenue in Mainland China[109] - Total retail points (POS) for Chow Tai Fook Jewelry in Mainland China increased to 7,403 as of 31 March 2024, with a net addition of 143 stores during FY2024[122] - Overall retail sales value (RSV) increased by 17.3% YoY in FY2024, driven by a 23.3% increase in gold jewelry and products, while gem-set, platinum, and K-gold jewelry RSV declined by 5.9%[123] - E-commerce RSV grew by 18.8% YoY in FY2024, contributing to the overall RSV growth across all channels[126] - Brick-and-mortar stores accounted for approximately 95% of the company's RSV in Mainland China during FY2024

Investment Rating - The investment rating for Chow Tai Fook (1929.HK) is not explicitly stated in the provided documents, but the performance metrics suggest a positive outlook based on the reported financial results and growth rates. Core Insights - Chow Tai Fook reported FY2024 revenue of HKD 108.713 billion, a year-on-year increase of 15% [9] - Core profit reached HKD 12.163 billion, reflecting a growth of 21% [9] - The company proposed a final dividend of HKD 0.30 per share, with a total annual dividend of HKD 0.55, resulting in a payout ratio of 84.6% [4] Summary by Sections Financial Performance - Revenue from Mainland China was HKD 89.698 billion, up 9.9% year-on-year, with a fixed exchange rate growth of 14.1% [5] - The retail value in Mainland China saw a same-store sales increase of 1.8%, with embedded products declining by 14.4% and gold products increasing by 6.4% [5] - Revenue from Hong Kong, Macau, and overseas markets was HKD 19.015 billion, a significant increase of 45.6%, accounting for 17.5% of total revenue [5] Product Contribution - Gold products were the main driver of sales growth, with total product sales revenue of HKD 107.757 billion, a 15% increase [5] - The revenue breakdown showed a decline in embedded products by 13.3%, while gold products increased by 22.5% [5] Profitability Metrics - The core profit margin for FY2024 was 11.2%, an increase of 1.2 percentage points [5] - Adjusted gross margin was 22.8%, a decrease of 0.9 percentage points, attributed to the higher sales proportion of gold products [5] - Selling, General and Administrative (SG&A) expenses decreased by 2.9%, leading to a reduction in SG&A percentage by 2.3 percentage points [5] Future Outlook - For FY2025, revenue is projected at HKD 105.5 billion, reflecting a 3% decline, followed by a slight recovery in subsequent years [7] - Net profit for FY2025 is estimated at HKD 6.857 billion, a 5% increase year-on-year [7] - Earnings per share (EPS) for FY2025 is projected at HKD 0.69, with a price-to-earnings (P/E) ratio of 12.88 based on the closing price on June 18 [7]

Investment Rating - The investment rating for Chow Tai Fook (1929.HK) is not explicitly stated in the provided documents, but the report indicates a positive outlook based on performance metrics and growth forecasts. Core Viewpoints - Chow Tai Fook achieved revenue of HKD 108.71 billion for FY2024, representing a year-on-year increase of 14.8%, and a fixed exchange rate growth of 18.5% [4] - Core profit reached HKD 12.16 billion, up 28.9% year-on-year, with a net profit attributable to shareholders of HKD 6.50 billion, reflecting a 20.7% increase [4] - The company proposed a final dividend of HKD 0.30 per share, leading to a total annual dividend of HKD 0.55 per share, with a payout ratio of 84.6% [4] Summary by Sections Revenue Performance - Revenue from Mainland China was HKD 89.70 billion, a growth of 9.9% year-on-year, and 14.1% growth at fixed exchange rates [5] - The retail segment in Mainland China saw a same-store sales growth of 1.8%, with embedded products and gold growing by 14.4% and 6.4% respectively [5] - Revenue from Hong Kong, Macau, and overseas markets was HKD 19.02 billion, a significant increase of 45.6%, accounting for 17.5% of total revenue [5] Product Contribution - Gold products were the main driver of sales growth, with total product sales revenue of HKD 107.76 billion, up 15% year-on-year [5] - The sales revenue breakdown showed a decline in embedded products by 13.3%, while gold products increased by 22.5% [5] Profitability Metrics - The core profit margin for FY2024 was 11.2%, an increase of 1.2 percentage points year-on-year [5] - Adjusted gross margin was 22.8%, down 0.9 percentage points, primarily due to the increased sales proportion of gold products [5] - Selling, General and Administrative (SG&A) expenses decreased by 2.9%, contributing to a reduction in SG&A percentage [5] Future Outlook - For FY2025, revenue is projected to be HKD 105.50 billion, reflecting a 3% decline year-on-year, with net profit expected to grow by 5% to HKD 6.86 billion [7] - The earnings per share (EPS) forecast for FY2025 is HKD 0.69, with a price-to-earnings (P/E) ratio of 13 times based on the closing price on June 18 [7]