Investment Rating - The report maintains a "Buy" rating for the company [6][5]. Core Insights - The company reported a revenue of HKD 6.84 billion for FY26H1, representing a year-on-year increase of 25.6%, and a net profit of HKD 600 million, up 44.1%, aligning with previous forecasts [1]. - The growth in revenue is attributed to effective product differentiation and sales strategies, particularly in the pricing jewelry segment, which saw a revenue increase of 67.9% [2]. - The company plans to distribute an interim dividend of HKD 0.55 per share, with a payout ratio of 52%, indicating a commitment to shareholder returns [1]. Revenue Breakdown - By product, revenue from gold and platinum products was HKD 4.10 billion, up 11.0%, while pricing jewelry revenue reached HKD 2.28 billion, up 67.9%, increasing its share of total sales by 8.8 percentage points to 35.7% [2]. - Retail business revenue was HKD 5.26 billion, up 12.8%, and wholesale revenue surged to HKD 1.12 billion, up 190.6%, driven by increased product categories and strong demand for new items [2]. - Regionally, revenue from Hong Kong, Macau, and overseas markets was HKD 3.86 billion, up 9.9%, while mainland China revenue was HKD 2.98 billion, up 54.2% [2]. Profitability and Margin Analysis - The company's gross margin improved by 2.0 percentage points to 34.7%, reaching a historical high, with gold and platinum products' gross margin increasing by 2.8 percentage points to 30.3% [3]. - The net profit margin increased by 1.1 percentage points to 8.8%, supported by operational leverage and a decrease in selling and administrative expense ratios [3]. Store Expansion and Market Strategy - The company operated a total of 3,113 stores globally, with 3,000 in mainland China and 113 in Hong Kong, Macau, and overseas, closing 174 stores in the first half of FY26 [4]. - The company is nearing the end of its store closure phase and plans to open at least 50 new overseas stores by FY28, including its first entry into the Vietnamese market [4]. Earnings Forecast and Valuation - The net profit forecasts for FY26 to FY28 have been raised by 5% to 6%, now projected at HKD 1.55 billion, HKD 1.73 billion, and HKD 1.92 billion respectively [5]. - The target price is set at HKD 35.10, corresponding to a 14x PE for FY26, reflecting the company's improving same-store sales and balanced regional coverage [5].
六福集团（00590）：定价产品及海外拓展贡献增长亮点