GOLDEN SUN SECURITIES·2025-11-26 07:57Investment Rating - The report maintains a "Buy" rating for Chow Tai Fook (01929.HK) [5] Core Insights - Chow Tai Fook's FY2026H1 revenue decreased by 1.1% year-on-year to HKD 38.986 billion, while operating profit increased by 0.7% to HKD 6.823 billion, indicating steady operational improvement [1] - The company is expected to see a revenue growth of 3.1% for FY2026, with a significant increase in net profit projected at 36.8% to HKD 8.092 billion [3][9] Summary by Relevant Sections Revenue Performance - In FY2026H1, revenue from mainland China decreased by 2.5% to HKD 32.194 billion, with retail and wholesale channel revenues growing by 8.1% and declining by 10.2% respectively [1] - The company has optimized its retail network, closing 611 stores while opening 57 new ones, with new stores achieving an average monthly sales of over HKD 1.3 million, a 72% increase year-on-year [2] Product Strategy - The sales revenue from priced gold jewelry increased by 9.3%, accounting for 29.6% of total revenue, while revenue from gold jewelry priced by weight decreased by 3.8% [2] - The company focuses on product optimization, with notable sales from its signature series, which reached HKD 3.4 billion, a 48% increase year-on-year [2] Geographic Expansion - Revenue from Hong Kong, Macau, and other regions grew by 6.5% to HKD 6.792 billion, benefiting from a recovery in retail consumption and foot traffic [3] - The company is actively expanding into Southeast Asia and Oceania, enhancing retail experiences through store upgrades and new openings [3] Financial Projections - For FY2026, Chow Tai Fook is projected to achieve a revenue of HKD 92.453 billion and a net profit of HKD 8.092 billion, with an expected EPS of HKD 0.82 [10][11] - The company’s return on equity (ROE) is expected to improve to 28.1% by FY2026, with a P/E ratio of 18.6 times [10][13]