CHOW TAI FOOK(01929) 国盛证券·2025-02-11 06:17Investment Rating - The report maintains a "Buy" rating for Chow Tai Fook (01929.HK) [2][4] Core Views - The company experienced a year-on-year decline in RSV of 14.2% in FY2025Q3, but the sales decline has narrowed compared to Q2. The decline in mainland RSV was 13%, while Hong Kong, Macau, and other markets saw a decline of 20.4% [1] - The company is focusing on optimizing its product structure, with a notable increase in the sales proportion of high-margin, well-designed gold products, which rose from 6.9% to 18.7% [1] - The company is undergoing a net store closure strategy, with 261 stores closed in mainland China by the end of December 2024, emphasizing the importance of single-store operations [1] Financial Summary - Revenue is expected to decline by 16.3% in FY2025, with a projected net profit decrease of approximately 5% [2] - The company’s revenue for FY2025 is estimated at 91.03 billion HKD, with a net profit of 6.15 billion HKD [3] - The projected earnings per share (EPS) for FY2025 is 0.62 HKD, with a price-to-earnings (P/E) ratio of 12 times [3][4] Sales Performance - In FY2025Q3, the mainland's same-store sales declined by 16.1% for direct stores and 12.3% for franchise stores, indicating a better performance for franchises due to faster operational efficiency improvements [1] - In Hong Kong and Macau, same-store sales for jewelry embedded products increased by 33.7%, while gold products saw a decline of 36.2% [1] Store Operations - As of December 2024, Chow Tai Fook operated a total of 6,836 stores globally, with 6,685 in mainland China, 86 in Hong Kong and Macau, and 65 in other markets [1] - The company continues to focus on rectifying underperforming stores in response to the fluctuating consumer environment [1]