CHOW TAI SENG Jewellery Company Limited(SZ:002867) Xinda Securities·2025-05-06 13:47Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company's performance in 2024 was impacted by fluctuations in gold prices, with a revenue of 13.89 billion yuan, a year-on-year decrease of 14.73%, and a net profit of 1.01 billion yuan, down 23.25% [1] - The company plans to maintain a high dividend payout ratio in 2024, with a total cash dividend of 1.03 billion yuan, resulting in a dividend rate of 102.09% [2] - The decline in revenue is primarily attributed to the franchise business and gold products, with a net reduction of 98 stores in 2024 [3] Financial Performance Summary - In 2024, the company achieved revenues of 138.91 billion yuan, with a net profit of 10.10 billion yuan, and a gross profit margin of 20.8% [1][6] - For Q1 2025, the company reported revenues of 2.67 billion yuan, a decrease of 47.28%, with a net profit of 0.25 billion yuan, down 26.12% [1][3] - The company expects revenues of 142 billion yuan in 2025, with a projected net profit of 1.12 billion yuan, reflecting a year-on-year growth of 11% [4][6] Product and Channel Performance - Revenue from self-operated stores increased by 7.8%, while franchise revenue decreased by 23.3% in 2024 [3] - The revenue breakdown for 2024 shows that gold jewelry sales decreased by 17%, while other jewelry categories saw mixed results [3] - The company had a total of 5,008 stores at the end of 2024, with a net closure of 98 stores during the year [3] Future Projections - The company forecasts revenue growth of 3% in 2025, with net profit expected to rise by 11% [4] - The projected P/E ratios for 2025, 2026, and 2027 are 13, 11, and 9 times, respectively [4]