Ge Long Hui·2025-11-28 04:14Core Viewpoint - The company reported a slight decline in revenue for FY2026H1, but operating profit showed a steady improvement, indicating a recovery trend in its performance [1][2]. Revenue Performance - For FY2026H1, the company's revenue decreased by 1.1% year-on-year to HKD 38.986 billion, while operating profit increased by 0.7% to HKD 6.823 billion, with an operating margin improvement of 0.3 percentage points to 17.5% [1]. - In mainland China, revenue fell by 2.5% to HKD 32.194 billion, with retail channel revenue increasing by 8.1% and wholesale channel revenue decreasing by 10.2% due to store integration [1][2]. Channel Strategy - The company focused on optimizing single-store operations and reported strong growth in e-commerce sales, which increased by 27.6% year-on-year [2]. - As of the end of the reporting period, the company operated 5,663 retail stores in mainland China, with 73% being franchise stores, and closed 611 stores since the beginning of the fiscal year [2]. Product Performance - The sales revenue from priced gold jewelry increased by 9.3%, accounting for 29.6% of total revenue, while revenue from gold jewelry priced by weight decreased by 3.8% [2]. - The company emphasized product optimization, with notable sales growth in its signature product series, achieving HKD 3.4 billion in sales for the Chuanxi, Chuanfu, and Palace Museum series, a 48% increase year-on-year [2]. Regional Performance - Revenue from Hong Kong, Macau, and other regions grew by 6.5% to HKD 6.792 billion, benefiting from a recovery in retail consumption and foot traffic [3]. - The company is actively expanding its international market presence, particularly in Southeast Asia and Oceania, while enhancing the retail experience through store upgrades and new openings [3]. Future Outlook - The company expects a revenue growth of 3% for FY2026 and a 37% increase in net profit attributable to shareholders [3]. - Projections for net profit for FY2026-2028 are HKD 80.92 billion, HKD 92.01 billion, and HKD 103.90 billion, respectively, with a PE ratio of 19 times for FY2026 [4].