Investment Rating - The report maintains a "Buy" rating for Luk Fook Holdings (590 HK) with a target price of HKD 22.08 [2][5]. Core Insights - The company's revenue for FY24 increased by 28.0% to HKD 15.3 billion, and net profit rose by 37.6% to HKD 1.77 billion, slightly below Bloomberg consensus expectations of HKD 1.84 billion [2]. - The main growth driver has shifted from mainland wholesale to retail in Hong Kong and Macau, with retail revenue increasing by 52.9% to HKD 9.89 billion [2][3]. - The report anticipates a recovery in same-store sales in the second half of the year as gold prices stabilize, and new brands are expected to contribute additional revenue [3]. Summary by Sections Financial Performance - FY24 revenue reached HKD 15.3 billion, a 28.0% increase year-on-year, while net profit was HKD 1.77 billion, up 37.6% [2]. - Revenue breakdown: Retail +45.3%, Wholesale -28.3%, Brand -1.8% [2]. - Retail growth was primarily driven by Hong Kong and Macau, while mainland wholesale saw a decline of 30.0% [2]. Business Structure Adjustment - The company has successfully transitioned its growth engine from embedded products to gold and self-operated channels, with significant increases in profitability from gold and platinum products [3]. - The number of self-operated and franchised stores increased by 81 and 379, respectively, with a same-store sales growth (SSSG) of 31.9% overall [3]. Future Projections - The report has adjusted net profit forecasts for FY25 and FY26 to HKD 1.66 billion and HKD 1.80 billion, respectively, and introduced a new forecast for FY27 at HKD 2.03 billion [2]. - The company is expected to maintain a PE ratio of 7.8x for FY25, based on a five-year average of 10x [2].
六福集团：港澳延续靓丽表现，营收净利快增