Jinwu Financial News | According to Tianfeng Securities Research Report, SGE Gold 9999 has risen by about 7% since July 2024, and is still in a strong upward channel. At the same time, total retail sales of social consumer goods also increased 2.1% in August 2024, with gold and silver jewelry falling by 12.0%. The bank believes that it is mainly due to the excessive rise in gold prices, which partially curbs terminal consumption capacity, and wait-and-see sentiment is increasing.
According to the bank, Chow Tai ?$#@$ (01929)'s FY25Q1 sales performance was weak. As the macroeconomic environment continues to affect consumption, same-store sales in mainland China, Hong Kong and Macau all declined. Coupled with the high price of gold, demand for gold jewelry during the season (3 months ending June 30, 2024) was affected. This is an overall industry phenomenon.
Due to the strong impact of gold price performance on jewellery consumption, the bank adjusted its profit forecast and estimated FY25-27 revenue of HK$94.5 billion, HK$103.9 billion, and HK$114.5 billion (the original value was HK$113.6 billion, HK$121.4 billion, HK$130.3 billion) to mother profit of HK$5.98 billion and HK$6.91 billion respectively HKD, HK$7.94 billion (previous values were HK$6.9 billion, HK$7.6 billion, HK$8.5 billion respectively); EPS was HK$0.60, HK$0.69, and HK$0.80, respectively. Maintain a buy rating.
