Guosen Securities issued a research report stating that Chow Tai Fook (01929) released unaudited major business data for April-June 2024. The overall retail value decreased by 20% year-on-year, with retail value in China (excluding Hong Kong, Macao, and Taiwan) down 18.6% year-on-year, and Hong Kong, Macao and other markets down 28.8% year-on-year.
The bank believes that in the medium and long term, the gold and jewelry industry will still maintain a steady growth trend due to the support of consumers' value preservation needs and the continuous improvement of product design. As a leader in the gold and jewelry industry, the company's product iteration and channel layout are ahead of the market. Under the trend of increasing importance of industry brand competitiveness in the future, the company's leading advantages are expected to be continuously strengthened. Considering the observation and suppression of end consumers' demand caused by high fluctuations in gold prices, the bank has lowered the company's net income for the 2025-2027 fiscal years to HKD 7.038/7.682/8.362 billion (previous values were HKD 7.249/8.143/8.976 billion), corresponding to PEs of 11.2/10.3/9.5 times, and maintains an "outperform" rating.