CHOW TAI FOOK(01929)2024-04-13 16:00Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - In FY2024Q4, the company's retail sales in mainland China increased by 12.4% year-on-year, with retail sales in Hong Kong, Macau, and other regions growing by 12.8% [3] - Same-store sales in mainland China declined by 2.7% due to a high base effect from the previous year, while same-store sales in Hong Kong and Macau grew by 4.5% driven by the recovery of inbound tourism [3] - The demand for gold products remains strong, with gold jewelry and products contributing 84.8% of retail sales in mainland China during FY2024Q4 [3] - The company is focusing on improving the operational efficiency of its retail channels, closing 89 underperforming stores in mainland China while opening 143 new stores [3][4] - New franchise stores showed impressive performance, with retail sales in mainland China growing by 18.3% year-on-year, contributing 70.4% to mainland retail sales [4] - The profit forecast for the company has been adjusted downwards for FY2024-FY2026, with the latest closing price corresponding to a P/E ratio of 15/13/11 times for FY2024-FY2026 [4] Financial Summary - Total revenue (in million HKD) is projected to be 108,524 in FY2024, with a year-on-year growth of 14.22% [2] - Net profit attributable to the parent company is expected to reach 7,588 million HKD in FY2024, reflecting a significant year-on-year increase of 40.93% [2] - The latest diluted EPS is forecasted to be 0.76 HKD for FY2024, with a P/E ratio of 14.95 [2]