CHOW TAI FOOK(01929) 国盛证券·2024-06-14 04:30Investment Rating - The report maintains a "Buy" rating for Chow Tai Fook (01929 HK) [5] Core Views - Chow Tai Fook's FY2024 performance was stable with revenue and net profit growing by 14 8% and 20 7% respectively [1] - The company's adjusted gross margin decreased by 0 9 percentage points to 22 8% due to changes in product mix and increased wholesale channel contribution [1] - Mainland China revenue grew by 9 9% with wholesale channel revenue increasing by 15 1% [1] - Hong Kong Macau and other regions saw a significant revenue increase of 45 6% driven by improved consumption from mainland tourists [2] - The company expects single digit revenue growth and over 10% net profit growth for FY2025 [2] Financial Performance - FY2024 revenue reached HKD 108 713 billion with net profit attributable to shareholders of HKD 6 499 billion [1] - Mainland China revenue accounted for HKD 896 98 billion with retail and wholesale channels growing by 3 6% and 15 1% respectively [1] - Hong Kong Macau and other regions contributed HKD 190 15 billion to revenue [2] - The company's operating profit margin improved by 1 2 percentage points to 11 2% [1] Store Operations - As of FY2024 the company operated 7 403 Chow Tai Fook jewelry retail points in Mainland China with a net increase of 143 stores [1] - Directly operated stores accounted for 23 3% while franchised stores made up 76 7% of the total [1] - Store distribution by city tier was 12 2% in Tier 1 cities 42 3% in Tier 2 cities 21 9% in Tier 3 cities and 23 7% in Tier 4 and other cities [1] Product Performance - Gold product revenue in Mainland China increased by 23 3% while镶嵌 product revenue decreased by 5 9% [2] - Priced gold products accounted for 84 6% of gold product revenue with a slight decrease of 0 4 percentage points year over year [2] - Diamond镶嵌 products accounted for 57 7% of镶嵌 product revenue a decrease of 2 8 percentage points year over year [2] Future Outlook - The company expects FY2025 revenue to grow in the single digits with net profit growth exceeding 10% [2] - Long term growth is expected to be driven by improved single store efficiency and product optimization [2] - FY2025 FY2027 net profit is forecasted to be HKD 7 323 billion HKD 8 224 billion and HKD 9 273 billion respectively [2] Valuation - The company's FY2025 PE ratio is estimated at 13x [2] - FY2025 FY2027 EPS is projected to be HKD 0 73 HKD 0 82 and HKD 0 93 respectively [2][13]