KAIYUAN SECURITIES·2024-06-15 13:01Investment Rating - The investment rating for Chow Tai Fook (01929.HK) is "Buy" (maintained) [2][11] Core Views - Chow Tai Fook reported a robust growth in FY2024 with revenue increasing by 14.8% year-on-year to HKD 108.71 billion and net profit rising by 20.7% to HKD 6.50 billion, indicating a recovery in operational performance [5][6] - The company is focusing on enhancing brand strength and optimizing operational quality as part of its mid-term transformation strategy, aiming for a century milestone in 2029 [7] Summary by Sections Financial Performance - FY2024 revenue reached HKD 108.71 billion, a year-on-year increase of 14.8%, while net profit was HKD 6.50 billion, up 20.7% [5][8] - The forecast for net profit for FY2025-2027 is HKD 7.28 billion (-16.78%), HKD 8.18 billion (-18.72%), and HKD 9.22 billion, with corresponding EPS of HKD 0.73 (-0.17), HKD 0.82 (-0.19), and HKD 0.92 [5][8] Market Performance - Revenue from mainland China was HKD 89.70 billion, a 9.9% increase, accounting for 82.5% of total revenue, while revenue from markets outside mainland China was HKD 19.02 billion, a significant increase of 45.6% [6] - Retail and wholesale revenues in mainland China grew by 3.6% and 15.1% respectively, with the latter representing 57.0% of mainland revenue [6] Strategic Initiatives - The company added 143 new stores in mainland China, bringing the total to 7,403, while adopting a more cautious approach to store expansion to enhance the efficiency of existing outlets [7] - Chow Tai Fook is implementing a mid-term transformation strategy that includes brand transformation, product optimization, and accelerated digital transformation, with plans to open its first flagship store in Shanghai by 2025 [7]