Jinwu Financial News | Chow Tai ?$#@$ (01929) continued to rise in the intraday period. As of press release, it reported HK$10.74, up 3.27%, with a turnover of HK$16.127 million.
According to a report published by HSBC Global Research, Chow Tai ?$#@$ (01929)'s jewellery consumption remained resilient in the 2024 fiscal year ending the end of March this year, and the Group's total retail sales value (RSV) growth performance was superior to the average of the mainland, Hong Kong and Macau industries. The bank expects the Group's full-year revenue to increase by 15.6% year-on-year, reaching the target limit of 15% of the low double-digit growth forecast by management. Due to operating leverage and stable core gross profit margin, the bank also expects the Group's core operating profit (COP) to increase by 25.7% year-on-year, reaching management growth of more than 20%. The bank raised the company's recurrent net profit forecast for the 2024 fiscal year by 5.3% to 8.807 billion yuan, and the revenue forecast increased by 1.8%. However, considering gold's account hedging losses, the net profit forecast was lowered by 14.5% to $6.883 billion, and the dividend forecast was raised to HK66 cents per share by maintaining a recurring net profit distribution ratio of 75%.
The bank said that the Group's prudent expansion strategy can ensure stable profits and strong free cash flow to support returns. Maintaining the Group's “Buy” rating, the target price was raised from HK$14.3 to HK$14.6.