CHOW TAI FOOK(01929) 海通国际证券·2025-04-29 07:05Investment Rating - The report does not explicitly state an investment rating for Chow Tai Fook, but it discusses expectations for gross profit margin and operating profit margin improvements, indicating a positive outlook for the company [1][9][11]. Core Insights - Chow Tai Fook's overall retail sales value (RSV) declined by 11.6% year-on-year in FY25Q4, with the Mainland market and Hong Kong, Macau, and other markets experiencing declines of 10.4% and 20.7% respectively, primarily due to macroeconomic factors and high gold prices affecting consumer sentiment [1][10]. - Despite the decline in same-store sales volume, the company successfully increased the RSV share of high-margin products through product mix optimization and flexible pricing adjustments, leading to an increase in same-store average selling price (ASP) [1][9][11]. - The ASP for gold jewelry in Mainland China rose to HK8,600, a 14.7% rise [1][9]. Summary by Sections Retail Sales Performance - In FY25Q4, same-store RSV in the Mainland market decreased by 10.4%, with direct-managed and franchised stores seeing declines of 13.2% and 8.7% respectively. The Hong Kong and Macau markets recorded a 22.5% decline in same-store RSV [2][10]. - The high gold prices have suppressed consumer willingness to purchase gold jewelry, impacting sales of gram-weight products [2][10]. Product Strategy - The company accelerated the introduction of set-price products, achieving a 19% share of total RSV in FY2025, exceeding the initial target of 15%. This share is expected to rise to 20%-23% in FY2026 [3][11]. - The RSV share of set-price products in the gold jewelry category increased from 9.4% in FY24Q4 to 25.6% in FY25Q4, surpassing management expectations [3][11]. Store Network Optimization - Chow Tai Fook closed 896 stores in the Mainland market during FY2025, primarily underperforming locations, with a total of 6,423 stores globally as of FY25Q4 [5][12]. - The company opened two new image stores in Shanghai and Wuhan, achieving higher productivity levels compared to closed stores, with average monthly sales of approximately HK$1 million [5][12]. Collaborative Products - In March 2025, Chow Tai Fook launched a co-branded gold jewelry collection with Chiikawa, featuring nine designs that sold out quickly, indicating strong market demand for innovative products [6][13].