The Zhitong Finance App learned that recently, against the backdrop of continued market turbulence, high dividend stocks have received widespread attention due to their strong defensive performance, and the newly promulgated new “National Nine Rules” have further enhanced the sector's advantages.

It is worth noting that in the Hong Kong stock market, there is also a target with such a high dividend rate and long-term incremental capital that can be expected, and that is Edway Xuan Group (09919), the “leader” in the luxury marketing industry.

Edway has always attached great importance to return on investment to shareholders and has formulated clear profit distribution and cash dividend policies. It has implemented high dividends for 3 consecutive years. In 2023, the dividend ratio is close to 75% (normal+special dividend). Currently, the dividend rate (TTM) is as high as 10%.

The high dividend is reflected in Edwin's management's confidence in the company's development, and Edwin's 2023 annual report further supports this view. As a leading high-end luxury brand experience marketing service provider in Greater China, Edway announced that its financial performance in 2023 reached a record high, showing strong growth capabilities.

According to the announcement, Edwin Group achieved revenue of about 967.2 million yuan in fiscal year 2023, an increase of about 39.2% over the previous year; net profit was about 118 million yuan, an increase of 319.9% over the previous year.

The board of directors believes that the Group's online and offline integrated marketing services have enhanced the brand value of customers, and demand for such marketing strategies is increasing. Furthermore, as a market leader in the industry, the Group successfully grasped the marketing needs of high-end brands in mainland China and Hong Kong, and further promoted the Group's overall business.

Edwin's strong performance growth is also related to its high-quality customer base. Currently, the company has served more than 550 world-famous brand customers, including well-known high-end brands such as Hermès, Cartier, Chanel, Dior, Louis Vuitton, and Gucci.

LVMH Group (LVMH), one of the Group's many high-end customers, announced its results for the first quarter of 2024 last night. Among them, sales revenue in the Japanese market surged 32% year on year, and its contribution to the group increased from 7% to 9%. Mainly due to purchases by Chinese consumers in the region, Japan is still one of the fastest-growing tourist destinations for Chinese tourists. Furthermore, from a global perspective, the number of Chinese customers increased 10% year over year.

Facing the huge Chinese market, LVMH Chief Financial Officer Jean Jacques Guiony once confessed that he had no idea where to do business with mainland Chinese consumers, whether in China, elsewhere in Asia, or outside of Asia. Considering that LVMH can now achieve such impressive sales, I believe Edwin, the largest provider of experiential marketing services for mid-range and high-end fashion brands in Greater China, has contributed greatly to helping luxury goods establish brand influence in China.

Obviously, compared to luxury brands such as Hermès, Dior, and Louis Vuitton, the entrance fee for Hong Kong stock, the high-dividend “luxury goods” giant Edwin announced, is much more affordable!