Core Viewpoints - The company, as a well-established Hong Kong brand, has a strong reputation in Hong Kong, Macau, and inland regions, with a proactive brand strategy leading to excellent sales performance of its Ice Diamond series products. The company's operational data has shown positive recovery for two consecutive quarters, indicating dual potential for performance recovery and valuation enhancement [1][2]. Sales Performance - For the first quarter of the 2026 fiscal year (ending June 30, 2025), the company reported a 13% increase in overall retail sales, recovering from a -2% decline in the previous quarter and an -18% decline in the same period last year. Retail sales in Hong Kong, Macau, and overseas markets grew by 9%, while the inland market saw a 14% increase, marking two consecutive quarters of positive growth [1][2]. Same-Store Sales Recovery - The company achieved a same-store sales growth of 5% in the first quarter of 2026, marking the first positive growth after five quarters of pressure. By product category, gold products remained at 0%, while jewelry products grew by 19%. The sales of priced gold products reached 73%, slightly down from 79% in the previous quarter, with the exclusive Ice Diamond series significantly boosting sales [1][2]. Market Expansion Strategy - The company has a total of 3,162 stores, with 3,051 located in inland regions. The company continues to adjust its store layout, reducing the number of franchise stores under the Six福 brand by 117. It aims to stabilize its presence in mid-to-high-tier cities and resume store expansion in the second half of the fiscal year. The company is also deepening its multi-brand strategy, with the recently acquired 金至尊 brand expanding its direct stores [2]. Financial Outlook - The company has approximately HKD 10.7 billion in inventory, primarily consisting of highly liquid gold and jewelry products. With a market capitalization of HKD 12.4 billion, the company has a good safety margin. Given the positive operational data recovery over two consecutive quarters and the ongoing brand strategy development, the company is expected to achieve net profits of HKD 1.493 billion, HKD 1.673 billion, and HKD 1.904 billion for the fiscal years 2025-2027, corresponding to PE ratios of 8, 7, and 7 times [3].
六福集团(0590.HK)：销售提振明显 品牌化策略持续验证