Bank of America Securities predicts that Chow Tai Fook's core operating profit (COP) will increase by 20% to HKD 11.3 billion in the 2024 fiscal year.
Zhongdafa (01929) will release its 2024 financial results on Thursday, June 13, according to a research report released by Bank of America Securities, which will focus on the financial guidance for the 2025 fiscal year and potential special dividends.
Bank of America predicts that Chow Tai Fook's core operating profit (COP) will increase by 20% to HKD 11.3 billion in the 2024 fiscal year, and the bank believes that there should not be too many surprises. After the release of data in mid-April, Chow Tai Fook's guidance for COP growth in the fourth quarter was 20%, and other key areas included: the impact of gold prices on profit margins, the profit and loss of gold loans, new brand strategies, and capital expenditures.
The report stated that Chow Tai Fook surprised the market with a special dividend in the 2023 fiscal year. The bank believes that a special dividend is still possible in the 2024 fiscal year, but the dividend per share is estimated to be less than that of the 2023 fiscal year. The bank estimates that Chow Tai Fook will pay a year-end dividend of HKD 0.4 per share, and a special dividend of HKD 0.15 per share, showing a dividend payout ratio of 97% for the 2024 fiscal year. Chow Tai Fook had net cash of HKD 2 billion in September 2023 (excluding gold loans) and a total share capital of HKD 27.2 billion. Assuming Chow Tai Fook wants to maintain a net debt-to-share capital ratio of less than 20%, the group is estimated to still have HKD 6 billion in space to pay dividends.