Xinda Securities·2024-06-19 10:07Investment Rating - The investment rating for Chow Tai Fook (1929.HK) is not explicitly stated in the provided documents, but the performance metrics suggest a positive outlook based on the reported financial results and growth rates. Core Insights - Chow Tai Fook reported FY2024 revenue of HKD 108.713 billion, a year-on-year increase of 15% [9] - Core profit reached HKD 12.163 billion, reflecting a growth of 21% [9] - The company proposed a final dividend of HKD 0.30 per share, with a total annual dividend of HKD 0.55, resulting in a payout ratio of 84.6% [4] Summary by Sections Financial Performance - Revenue from Mainland China was HKD 89.698 billion, up 9.9% year-on-year, with a fixed exchange rate growth of 14.1% [5] - The retail value in Mainland China saw a same-store sales increase of 1.8%, with embedded products declining by 14.4% and gold products increasing by 6.4% [5] - Revenue from Hong Kong, Macau, and overseas markets was HKD 19.015 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 107.757 billion, a 15% increase [5] - The 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 [5] - Adjusted gross margin was 22.8%, a decrease of 0.9 percentage points, attributed to the higher sales proportion of gold products [5] - Selling, General and Administrative (SG&A) expenses decreased by 2.9%, leading to a reduction in SG&A percentage by 2.3 percentage points [5] Future Outlook - For FY2025, revenue is projected at HKD 105.5 billion, reflecting a 3% decline, followed by a slight recovery in subsequent years [7] - Net profit for FY2025 is estimated at HKD 6.857 billion, a 5% increase year-on-year [7] - Earnings per share (EPS) for FY2025 is projected at HKD 0.69, with a price-to-earnings (P/E) ratio of 12.88 based on the closing price on June 18 [7]