Chow Tai Fook Jewellery (01929) China SSS growth returned to positive in June Resurgence of COVID remains near-term risk Consumer | Luxury Retail Brand September 5, 2022 81

PSR Recommendation: NEUTRAL Status: Maintained
Target Price: HKD15.52

China SSS growth returned to positive in June
Chow Tai Fook Jewellery (CTF) announce certain unaudited key operational data of the
Group for the three months ended 30 June 2022 (1QFY2023), with both Mainland China and
Hong Kong and Macau recorded negative SSSG. Retail Sales Value (RSV) decreased 3.7% YoY,
due to the resurgence of the pandemic and a high base of comparison.
1QFY2023, by region, Mainland China RSV recorded –2.8% YoY, with contribution to group
RSV 89.9%. Same Store Sales (SSS) dropped by 19.3% YoY and SSS volume growth decreased
by 22.8% YoY. Yet, sequential improvement was seen with June SSSG returned to positive. In
Hong Kong and Macau, RSV dropped by 11%, contribution to group RSV 10.1%. SSS declined
by 6.4% and SSS volume growth decreased by 8.4%. Hong Kong’s SSSG was 7.3% in the
Quarter, estimated to be driven by consumer coupons. Macau registered a negative SSS of
34.3% as tourist traffic reduced due to the pandemic in the Mainland.
In the Mainland, SSS of gem-set, platinum and k-gold jewellery category dropped by 17.2%,
while its RSV decreased 6.3% during the Quarter. SSS of gem-set, platinum and k-gold
jewellery category in Hong Kong and Macau declined by 18.4% during the Quarter. Same
Store Average Selling Price (“ASP”) trend of gem-set jewellery was stable in both markets
during the Quarter. In the Mainland, Same Store ASP remained at HK$7,300 (1QFY2022:
HK$7,300) while that of Hong Kong and Macau increased to HK$16,500 (1QFY2022:
HK$14,000).

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Eric Li
Analyst
Research

李浩然先生(Eric Li) 高級分析師 現任現為輝立証券持牌高級分析師,曾任職股票基金、家族辦公室及證券公司等,擁有多年的證券研究部門從業及投資經驗,並先後於香港最暢銷的財經媒體撰寫投資專欄。畢業於香港理工大學電子計算系。 Eric is currently a licensed research analyst at Phillip Securities. Prior to joining Phillip Securities, he has years of equity research and investment experiences in asset management company, family office and securities company. Meanwhile, he has written investment columns in Hong Kong`s best-selling financial media for years. He holds Bachelor of Arts in Computing from The Hong Kong Polytechnic University.

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