Xinda Securities·2024-06-19 08:31Investment Rating - The investment rating for Chow Tai Fook (1929.HK) is not explicitly stated in the provided documents, but the report indicates a positive outlook based on performance metrics and growth forecasts. Core Viewpoints - Chow Tai Fook achieved revenue of HKD 108.71 billion for FY2024, representing a year-on-year increase of 14.8%, and a fixed exchange rate growth of 18.5% [4] - Core profit reached HKD 12.16 billion, up 28.9% year-on-year, with a net profit attributable to shareholders of HKD 6.50 billion, reflecting a 20.7% increase [4] - The company proposed a final dividend of HKD 0.30 per share, leading to a total annual dividend of HKD 0.55 per share, with a payout ratio of 84.6% [4] Summary by Sections Revenue Performance - Revenue from Mainland China was HKD 89.70 billion, a growth of 9.9% year-on-year, and 14.1% growth at fixed exchange rates [5] - The retail segment in Mainland China saw a same-store sales growth of 1.8%, with embedded products and gold growing by 14.4% and 6.4% respectively [5] - Revenue from Hong Kong, Macau, and overseas markets was HKD 19.02 billion, a significant increase of 45.6%, accounting for 17.5% of total revenue [5] Product Contribution - Gold products were the main driver of sales growth, with total product sales revenue of HKD 107.76 billion, up 15% year-on-year [5] - The sales revenue breakdown showed a decline in embedded products by 13.3%, while gold products increased by 22.5% [5] Profitability Metrics - The core profit margin for FY2024 was 11.2%, an increase of 1.2 percentage points year-on-year [5] - Adjusted gross margin was 22.8%, down 0.9 percentage points, primarily due to the increased sales proportion of gold products [5] - Selling, General and Administrative (SG&A) expenses decreased by 2.9%, contributing to a reduction in SG&A percentage [5] Future Outlook - For FY2025, revenue is projected to be HKD 105.50 billion, reflecting a 3% decline year-on-year, with net profit expected to grow by 5% to HKD 6.86 billion [7] - The earnings per share (EPS) forecast for FY2025 is HKD 0.69, with a price-to-earnings (P/E) ratio of 13 times based on the closing price on June 18 [7]