According to the research reports released by China Merchants, Chow Tai Fook (01929) announced its fiscal year 2024 performance announcement and its business data for April to May 2024. In FY24, the company achieved operating income of HKD 108.713 billion, YoY +14.82%; net income attributable to owners of the company was HKD 6.499 billion, YoY +20.71%. Within the fiscal year, a net increase of 143 stores, including 21 self-operated and 122 franchise stores, were opened. From April to May 2024, the company's revenue decreased by 20.2% YoY, and gold terminal sales were under pressure due to high fluctuations in gold prices.
The company is a leading brand in the gold and jewelry industry with advantages in brand power, product power, and channel aspects. The focus now is on improving the quality of operation, and long-term growth is expected. The company's net income attributable to owners of the company is expected to be HKD 7.26 billion, HKD 8.19 billion, and HKD 9.19 billion for FY2025-FY2027, with YoY growth rates of 12%, 13%, and 12%, respectively, corresponding to FY25PE12.0X, FY26PE10.7X, and FY27PE9.5X. Maintain a "strong buy" rating.