Macquarie released a report indicating that in the third quarter so far, the same-store sales decline in mainland China and Hong Kong/Macau has narrowed compared to the second quarter. Excluding losses from gold hedging, adjusted profit margins in Hong Kong/Macau and the mainland increased by 2.5 percentage points and decreased by 10.1 percentage points year-on-year, respectively. The company announced an interim dividend of 0.55 HKD per share, and the bank expects a full-year dividend of 1.1 HKD per share, implying a dividend yield of 7.4%.
Macquarie expects that the company will see improvements in business in the second half of fiscal year 2025. Considering factors such as losses from gold hedging, same-store sales, and store closures, net income forecasts for fiscal years 2025 and 2026 have been revised down by 27.7% and 24.9%, respectively. The target price has been lowered from 24.3 HKD to 17.6 HKD, maintaining an "outperform" rating.