Kingwo Financial News | Guosen's research report indicates that Chow Tai Fook (01929) achieved revenue of 39.408 billion Hong Kong dollars in the first half of the 2025 fiscal year (April to September 2024), a year-on-year decrease of 20.43%, and a net income of 2.53 billion Hong Kong dollars, a year-on-year decline of 44.4%. In addition, the company declared a mid-term dividend of 0.2 Hong Kong dollars per share, with a payout ratio of approximately 78.9% for the first half of the fiscal year, and plans to repurchase shares not exceeding 2 billion Hong Kong dollars. Furthermore, the company announced its business data from October 1 to November 18 this year, showing an overall retail value decline of 15% year-on-year, temporarily affected by high gold prices which suppressed terminal demand and due to a high base comparison.
The institution stated that the industry has seen terminal sales release impacted by high gold price fluctuations this year; however, in the long term, the gold jewelry industry still has further development potential supported by value retention demand and continuous improvement in product design. Recently, with gold prices stabilizing after a correction, consumer demand is expected to gradually return.
The institution, considering the suppressive effect of high gold price fluctuations on terminal consumer demand and the company's short-term store optimization, has adjusted the company's net income forecast for the 2025-2027 fiscal years to 5.251/6.154/6.884 billion Hong Kong dollars (previous estimates were 5.531/6.236/6.926 billion Hong Kong dollars), corresponding to PE ratios of 13/11.1/10 times, maintaining an 'outperform market' rating.
