六福集团(00590.HK)半年报点评：内地批发表现亮眼 10月以来延续良好表现

Core Viewpoint - The company's 1HFY26 performance met market expectations, with a revenue increase of 26% to HKD 6.8 billion and a net profit increase of 43% to HKD 620 million, alongside a declared interim dividend of HKD 0.55 per share, reflecting a payout ratio of 52% [1][2] Revenue Growth - The company's revenue in 1HFY26 grew by 26%, with mainland China revenue increasing by 54% to HKD 3 billion, driven by strong wholesale business performance, which saw a 203% increase [1] - Retail and brand business revenues in mainland China grew by 24% and 18%, respectively, with a net addition of 23 self-operated stores and a reduction of 202 brand stores during the period [1] - Revenue from Hong Kong, Macau, and overseas markets increased by 10% to HKD 3.9 billion, with retail, wholesale, and brand business revenues growing by 9%, 89%, and 4%, respectively [1] Profitability and Margins - The gross margin rose to a historical high of 35%, an increase of 2.0 percentage points, attributed to rising gold prices and a higher proportion of high-margin priced jewelry [2] - Operating leverage improved, leading to a decrease in sales and management expense ratios by 1.5 percentage points and 0.8 percentage points, respectively [2] - The net profit for the period increased by 43% to HKD 620 million, despite a loss of HKD 410 million from gold hedging [2] Market Expansion and Strategy - The company is actively expanding its overseas market presence, with management confident in achieving a net addition of 50 stores by FY27 as part of a three-year plan [2] - In the context of rapid domestic business growth, the company is also optimizing its domestic channels, anticipating a net closure of 200 stores in mainland China for FY26 [2] Future Trends - From October to November 21, same-store sales in mainland China, Hong Kong, Macau, and overseas markets showed double-digit growth, with significant improvement in mainland same-store sales compared to 2QFY26 [2] - The company is expected to benefit from improved market orientation of products and enhanced operational efficiency [2] Earnings Forecast and Valuation - Due to strong gross margin performance and operating leverage, the FY26 EPS forecast has been raised by 6% to HKD 2.70, while the FY27 EPS forecast remains at HKD 3.02 [2] - The current stock price corresponds to 9x and 8x FY26 and FY27 P/E ratios, respectively, maintaining an outperform rating and a target price of HKD 30.55, indicating a 25% upside potential [2]