Guangfa Securities: Maintain Chow Tai Fook's "buy" rating with a fair value of HKD 8.06

On December 4th, Golden Ten Data reported that GF Securities released a research report stating that the expected net profit attributable to shareholders of Chow Tai Fook (01929.HK) for FY25-27 is HK$5.4 billion, HK$6.5 billion, and HK$7.2 billion, respectively. Referring to the valuation of comparable companies, a PE ratio of 15 times for FY25 is given, corresponding to a fair value of HK$8.06 per share, maintaining a ‘buy’ rating. The company achieved revenue of HK$39.408 billion in FY25H1, a drop of 20.4% YoY, with a YoY drop of 27.9% in Hong Kong and Macau, and a drop of 18.8% in the mainland. The net profit attributable to shareholders was HK$2.53 billion, a drop of 44.4% YoY, mainly due to significant fluctuations in gold prices resulting in losses in gold borrowing and lending contracts. In addition, the company plans to distribute an interim dividend of HK$0.2 per share and intends to use up to HK$2 billion of internal resources to repurchase company shares.