Investment Rating - The report assigns a Neutral rating to Chow Tai Fook Jewellery Group with a 12-month target price of HK$9.00, indicating a downside potential of 26.7% from the current price of HK$12.28 [21][23]. Core Insights - Chow Tai Fook's FY25 dividend payout, QTD tracking, and FY26 operating profit guidance were weaker than market expectations, with a FY26 topline/SSSG target of low single-digit to mid-single-digit percentage growth under pressure due to negative SSSG in April and May [1][5]. - The company reported a 15.1% year-over-year decrease in total sales for 2HFY25, with a basic dividend of HK$0.32 per share, which was below the expected HK$0.50 [2][6]. - The management highlighted a focus on brand transformation and new product launches, including a high jewelry collection aimed at high-value clients, as a strategic move to enhance market presence [5][18]. Summary by Sections FY25 Results - 2HFY25 net income and operating profit were 4% and 2% below Goldman Sachs estimates, respectively, primarily due to less gross profit margin expansion [2]. - The gross profit margin for 2HFY25 was reported at 28.0%, up 480 basis points year-over-year, driven by a surge in gold prices and an improved product mix, although it was slightly below the expected 28.8% [10]. - The company declared a full-year dividend of HK$0.52 per share, which translates to a dividend yield of 4% [2][12]. QTD SSSG Tracking - The QTD same-store sales growth (SSSG) for April and May was -2.7% for direct stores in Mainland China and +1.3% in Hong Kong and Macau, both below expectations [3][13]. - The management noted a sequential month-over-month improvement in SSSG, but the outlook for June is expected to show a decline due to a tougher comparison base [3][14]. FY26 Outlook - The company anticipates a low single-digit to mid-single-digit percentage sales growth for FY26, with expectations of a decline in gross profit margin and operating profit margin due to less support from gold price surges [4][15]. - Management expects to maintain inventory turnover days at 320 days and plans to open 20 new image stores in FY26, focusing on store quality and productivity [14][16]. - The product pipeline includes continued launches of new collections, with a specific emphasis on high jewelry to cater to high-value clients [18].

Investment Rating - The investment rating for Zijin Mining Group is Overweight, with an industry view classified as Attractive [5][68]. Core Insights - Zijin Mining Group reported higher management expenses year-over-year primarily due to increased employee bonuses following strong FY24 earnings. Gains from fair value are mainly attributed to stock investments [2]. - The company is slowing down the construction of its lithium projects due to low lithium prices, while aiming to improve project designs to reduce production costs. Zijin plans to be ready for a quick ramp-up when lithium prices become favorable [3]. - Zijin is negotiating the purchase of 100% of the Akyem gold mine in Ghana, believing the project has potential for increased reserves given the current high gold prices [4]. - The growth in copper production volume in 1Q25 was mainly driven by Julong and Zijinshan, while gold volume growth was primarily from Shanxi Zijin and Porgera gold mine. Zijin is utilizing more low-grade ore due to rising gold prices, which has led to some increased costs, but aims to keep cost increases within 5% year-over-year in 2025 [8]. Financial Metrics - The price target for Zijin Mining Group is HK$22.90, representing a 33% upside from the current price of HK$17.22 [5]. - For the fiscal year ending December 2025, the estimated revenue is Rmb397,524 million, with an EBITDA of Rmb66,114 million and a net income of Rmb41,496 million [5]. - The projected EPS for 2025 is Rmb1.58, with a P/E ratio of 10.3 and a P/BV of 2.6 [5].