Changes in Hong Kong stocks | Chow Tai Fook (01929) fell more than 3% today to disclose interim results. Large fluctuations in institutional fees affected net profit for the first half of the year

The Zhitong Finance App learned that Chow Tai Fook (01929) fell by more than 3%. As of press release, it was down 3.25% to HK$6.84, with a turnover of HK$104 million.

According to the news, Chow Tai Fook will announce its interim results for the six months ended September 30, 2024 today. The company previously released unaudited main operating data for July-September 2024. The overall retail value fell 21% year on year. Among them, retail sales value in the Chinese market (excluding Hong Kong, Macao and Taiwan) fell 19.4% year on year, and Hong Kong, China, Macau and other markets fell 31% year on year.

According to Tianfeng Securities, FY25H1 revenue is expected to decrease by about 18% to 22%, while net profit will decrease by about 42% to 46%. When analyzing actual operating performance in the first half of the year and the same period last year, the impact of revaluation of gold loans should be excluded. In this way, the adjusted FY25H1 net profit decline will narrow to about 12% to 16%. According to the bank, due to large fluctuations in international gold prices in recent months, the company generated non-cash unrealized losses when revaluing outstanding gold loans based on the market price of gold on September 30, 2024, while the market price revaluation of gold loans for the same period last year recorded profits. This is the main reason for the decline in net profit in the first half of the year.