Investment Rating - The investment rating for the company is "Outperform the Market" (maintained) [2][4][15] Core Views - The company reported a year-on-year decline in overall retail value of 11.6% for the first quarter of 2025, with a 10.4% decline in the Chinese market (excluding Hong Kong, Macau, and Taiwan) and a 20.7% decline in Hong Kong, Macau, and other markets. However, the decline in same-store sales has narrowed compared to the previous quarter [3][5] - The proportion of high-margin priced products has significantly increased, with the retail value of priced products in the Chinese market (excluding Hong Kong, Macau, and Taiwan) rising from 9.4% to 25.6% year-on-year, supporting the company's gross margin resilience [3][5] - The company continues to enhance store efficiency by closing 406 underperforming stores, with a total of 6,643 stores remaining at the end of the period. Additionally, five new image stores were opened in the Chinese market, achieving performance above the average of same-store sales [3][10] Summary by Sections Retail Performance - Overall retail value decreased by 11.6% year-on-year, with a 10.4% decline in the Chinese market (excluding Hong Kong, Macau, and Taiwan) and a 20.7% decline in Hong Kong, Macau, and other markets. Same-store sales in the Chinese market fell by 13.2%, a decrease of 2.9 percentage points compared to the previous quarter [3][5] Product Sales Structure - The share of high-margin priced products has increased, with the retail value of priced products in the Chinese market (excluding Hong Kong, Macau, and Taiwan) rising from 9.4% to 25.6% year-on-year. The sales of the signature CTF Fortune and CTF Palace series reached approximately HKD 4 billion each for the fiscal year 2025 [3][5] Store Management - The company closed 406 underperforming stores, including 397 from the main CTF brand, resulting in a total of 6,643 stores at the end of the period. The company also opened five new image stores in the Chinese market, which performed better than the average same-store sales in the initial months [3][10] Financial Forecast - The company maintains its profit forecast for the fiscal years 2025-2027 at HKD 52.51 billion, HKD 61.54 billion, and HKD 68.84 billion, respectively, with corresponding P/E ratios of 18.3, 15.6, and 14 times [4][15]

Core Insights - Chow Tai Fook Jewelry Group announced the achievements of its brand transformation one year after its initiation, celebrating its 95th anniversary with the launch of the CTF Chuanfu series, which has achieved a retail value exceeding HKD 2.4 billion by the third quarter of the 2025 fiscal year [1] - The company introduced the new CTF Joie Collection, inspired by the meaningful characters in Chinese culture, continuing the narrative theme of the previous series [1] - The group has opened new stylish stores in Hong Kong, Shenzhen, Wuhan, Xi'an, and Shanghai, providing immersive and personalized customer experiences [1] - Chow Tai Fook launched the CTF PET pet jewelry line in March 2024, becoming the first Chinese jeweler to offer such products, targeting pet lovers [1] Strategic Collaborations - Since its launch in August 2024, the Chow Tai Fook Palace Museum series has recorded a retail value of HKD 1.6 billion by the third quarter of the 2025 fiscal year [2] - The company has enriched its product offerings through collaborations with popular IPs such as "Black Myth: Wukong," "Demon Slayer," and "Chiikawa," successfully tapping into previously undeveloped market segments [2] - The Vice Chairman of Chow Tai Fook, Zheng Zhiwen, emphasized the company's commitment to innovation, quality, and customer-centric approaches, aiming to redefine customer experiences and ensure sustainable growth [2]