Ge Long Hui·2025-07-24 10:47Core Viewpoint - Chow Tai Fook's FY2026 Q1 performance shows a slight decline in revenue, but overall results are in line with expectations, driven by improvements in offline and e-commerce sales channels [1][2]. Group 1: Domestic Performance - The group's RSV in mainland China decreased by 3.3% year-on-year in FY2026 Q1, with offline same-store sales showing a narrowing decline due to low base effects and product optimization [1]. - Direct same-store sales in mainland China fell by 3.3%, while franchise same-store sales remained flat, indicating a gradual improvement in sales performance [1]. - The retail sales of gold products increased by 20.8% year-on-year, with the proportion of gold jewelry sales rising from 15.8% to 19.8% [1]. Group 2: E-commerce Growth - E-commerce sales in mainland China grew by 27% year-on-year during the same period, accounting for 7.6% of total sales and 16.9% of total volume, reflecting a 1.8 percentage point and 3.1 percentage point increase, respectively [2]. - The company capitalized on the 618 sales event to drive e-commerce growth, and ongoing improvements in e-commerce operations are expected to sustain this growth trajectory [2]. Group 3: Regional Performance - In FY2026 Q1, RSV in Hong Kong, Macau, and other regions increased by 7.8%, with notable growth in Macau driven by improved consumer conditions and increased tourist activity [2]. - Direct same-store sales in Hong Kong grew by 0.2%, while Macau saw a significant increase of 9.5% year-on-year [2]. Group 4: Financial Outlook - The company anticipates a 3% revenue growth for FY2026, with operating profit expected to decline by 2% [3]. - The expected operating profit for FY2026 is projected at HKD 14.4 billion, while net profit attributable to shareholders is forecasted to increase by 26% to HKD 7.45 billion [3]. - The company maintains a "buy" rating, with projected net profits for FY2026-2028 at HKD 74.54 billion, HKD 84.48 billion, and HKD 94.64 billion, respectively [3].