Ge Long Hui·2025-11-28 04:14Core Viewpoint - The company has shown stable overall performance in the first half of the fiscal year, with accelerated growth since October, despite a slight decline in revenue due to strategic store reductions and high gold prices impacting product weight [1] Group 1: Financial Performance - For the first half of the fiscal year 2026 (April 2025 - September 2025), the company achieved revenue of HKD 38.986 billion, a slight year-on-year decrease of 1.1% [1] - The net profit attributable to shareholders was HKD 2.534 billion, reflecting a minor year-on-year increase of 0.13% [1] - From October 1 to November 18, the group’s retail value increased by 33.9%, with same-store sales in mainland China growing by 38.8% [1] Group 2: Business Segmentation - Retail revenue in mainland China increased by 8.1%, accounting for 38.4% of total revenue, while wholesale revenue decreased by 10.2%, making up 44.2% of total revenue [2] - Revenue from Hong Kong, Macau, and overseas markets grew by 6.5%, representing 17.4% of total revenue [2] - The revenue from priced jewelry increased by 9.3%, with a revenue share of 29.6%, indicating strong performance in priced gold products [2] Group 3: Operational Efficiency - The overall gross margin was maintained above 30%, recorded at 30.5%, despite a year-on-year decrease of 0.9 percentage points [3] - The selling and administrative expense ratio improved, decreasing by 1.2 percentage points to 14% due to optimized cost control [3] - Inventory turnover days decreased by 33 days to 424 days, indicating improved operational efficiency [3] Group 4: Future Outlook - The company plans to enhance the layout of high-margin priced products and optimize store structures to boost same-store sales [4] - The fair value loss on gold loans is expected to be higher than previously anticipated, leading to a downward revision of net profit forecasts for fiscal years 2026-2028 [4] - The projected net profits for 2026, 2027, and 2028 are HKD 7.141 billion, HKD 8.178 billion, and HKD 9.061 billion, respectively, with corresponding PE ratios of 21.1, 18.4, and 16.6 times [4]