Minsheng Securities·2024-06-15 12:01Investment Rating - The report maintains a "Buy" rating for the company [2][3] Core Views - The company achieved a revenue of HKD 108.71 billion for FY2024, representing a year-on-year increase of 14.82%, and a net profit of HKD 6.50 billion, up 20.71% year-on-year [2] - The company expects revenue growth to stabilize in the second half of the fiscal year, driven by improved consumer demand and stable gold prices [2] - The company is focusing on optimizing its product mix and enhancing its brand appeal as it celebrates its 95th anniversary [2] Financial Performance Summary - For FY2024, the company reported a gross margin of 20.5%, a decrease of 1.9 percentage points year-on-year, while the adjusted gross margin was 22.8% [2] - The company’s operating profit margin increased by 1.2 percentage points to 11.2%, and the net profit margin rose by 0.3 percentage points to 6.1% [2] - The company plans to distribute a dividend of HKD 0.55 per share for FY2024, with a payout ratio of 84.6% [2] Revenue and Profit Forecast - The company is projected to achieve revenues of HKD 117.68 billion, HKD 126.59 billion, and HKD 136.13 billion for FY2025, FY2026, and FY2027, respectively, with growth rates of 8.2%, 7.6%, and 7.5% [3] - The expected net profits for the same periods are HKD 7.29 billion, HKD 8.16 billion, and HKD 9.12 billion, reflecting year-on-year growth rates of 12.1%, 12.0%, and 11.8% [3] Market and Operational Insights - The company’s retail revenue in mainland China reached HKD 89.70 billion, a 9.9% increase year-on-year, while revenue from Hong Kong, Macau, and other markets surged by 45.6% to HKD 19.02 billion [2] - The company has a total of 7,548 retail points, with a net increase of 153 stores, indicating a strong expansion strategy [2] - The company’s focus on high-value products has led to a 20% increase in sales of its signature gold jewelry series [2]