GOLDEN SUN SECURITIES·2024-04-14 16:00Investment Rating - The report maintains a "Buy" rating for Chow Tai Fook (01929.HK) [4] Core Views - The company achieved a 12.4% year-on-year growth in RSV for Q4 FY2024, meeting expectations, with strong performance in both mainland China and other markets [1] - The company is focusing on optimizing store quality and enhancing single-store operations while being cautious about new store openings [2] - Revenue for FY2024 is expected to grow by 15%, with a projected profit increase of around 25% [2] Summary by Sections Sales Performance - For the period of January to March 2024, the company's RSV grew by 12.4% year-on-year, with mainland RSV also increasing by 12.4% and Hong Kong, Macau, and other markets seeing a 12.8% growth [1] - In mainland China, the growth was supported by improved store efficiency and a slight net increase in store openings, with franchise stores showing an 18.3% increase in RSV [1] Store Operations - The company has slowed down its store opening pace, closing 89 stores in mainland China while opening 143 stores throughout FY2024 [2] - The focus is on optimizing the existing store structure and enhancing the performance of individual stores [2] Product Performance - Sales of gold jewelry showed a positive trend with a 3.4% increase in same-store sales, while sales of jewelry inlaid products faced pressure, declining by 19.5% [1] - The average price of gold products in mainland China increased by 10% year-on-year, contributing to the strong performance of gold jewelry [1] Financial Projections - The company expects FY2024 revenue to reach HKD 109.02 billion, with a year-on-year growth rate of 15.1% [3] - The projected net profit for FY2024 is HKD 6.743 billion, reflecting a 25.2% year-on-year increase [3] - The report adjusts the net profit forecasts for FY2024-2026 to HKD 67.43 billion, HKD 85.46 billion, and HKD 100.12 billion respectively [2]