CHOW SANG SANG(HK:00116) 智通财经网·2025-09-01 07:22Core Viewpoint - Chow Sang Sang (00116) reported a mixed performance in its interim results, with a revenue decline but a significant increase in net profit, leading to a positive market reaction reflected in its stock price increase [1] Financial Performance - Revenue for the first half of the year decreased by 2% to HKD 11 billion [1] - Net profit attributable to shareholders increased by 71% to HKD 900 million [1] - The company declared an interim dividend of HKD 0.21 per share, up from HKD 0.15 per share in the same period last year, resulting in a payout ratio of 16% [1] Market and Operational Insights - Same-store sales performance in mainland China and Hong Kong-Macau markets improved compared to Q2 2025 [1] - Management plans to continue optimizing mainland channels and expects to reduce the number of stores by 10% by the end of 2025 compared to the beginning of the year [1] Analyst Expectations - Due to the company's better-than-expected gross margin performance, earnings per share (EPS) forecasts for 2025/26 have been raised by 50% and 34% to HKD 1.94 and HKD 2.01, respectively [1] - The current stock price corresponds to a price-to-earnings (P/E) ratio of 7/7 times for 2025/26 [1] - Target price has been adjusted from HKD 8.36 to HKD 15.16 due to industry valuation improvements [1]