The Zhitong Finance App learned that CITIC Securities released a research report saying that it maintains the “buy” rating of Zhou Tai Fu (01929), adheres to the one-price spirit in terminal sales, and expects a steady increase in adjusted gross margin. Therefore, it raised the net profit forecast for FY2024-26 to 75.4/93/11.13 billion yuan. In addition, given that the price of gold continues to rise and the price war is intense, Chow Tai ?$#@$ focuses on brand maintenance and has few discounts for long-term development. At the same time, it will still take some time to cultivate a large number of new stores. The revenue forecast for the 2024-26 fiscal year was lowered to 1095.7/1237.8/138 billion yuan, and the target price was lowered from HK$19 to HK$18.

According to the report, the company's revenue and profit for fiscal year 2023 (the year ending the end of March this year) was strong. Revenue during the period fell 4.3% year on year to 94.68 billion yuan; adjusted gross margin increased 0.3 percentage points to 23.7%; and the main operating profit margin was 10%, down 0.1 percentage points from the previous year. The company's annual same-store sales growth rate (direct-run stores) fell 13.1%. In addition, it maintained the guidelines for a net increase of 600 to 800 Chow Tai ?$#@$ jewelry retail outlets in the mainland in fiscal year 2024, and focused on high-quality expansion and enhancing the efficiency and customer experience of existing retail network stores.