Chow Sang Sang Holdings International (116) H2 2024 earnings summary

Executive summary

• Turnover from continuing operations fell 15% year-over-year to HK$21,176 million due to economic uncertainty and record-high gold prices impacting demand in Mainland China and Hong Kong/Macau.

• Profit attributable to owners dropped 20% to HK$806 million, with profit from continuing operations down 27% to HK$772 million.

• Store network consolidation continued, with 48 openings and 122 closures, mainly in Mainland China.

• Gross profit margin improved by 1.9 percentage points to 28.3% through product mix optimization.

Financial highlights

• Retail segment revenue declined 15% to HK$20,697 million; wholesale of precious metals dropped 37% to HK$451 million.

• Earnings per share (basic and diluted) decreased 20% to 119.1 cents; from continuing operations, EPS fell 27% to 114.1 cents.

• Total dividend per share for the year was 51.0 cents, down from 60.0 cents, with a payout ratio of 43%.

• Equity attributable to owners rose 2% to HK$12,430 million; equity per share increased 3% to HK$18.5.

• Net gearing ratio was 29.7%; current ratio stood at 2.6.

Outlook and guidance

• Cautious optimism for Mainland China due to monetary easing and property support, but gem-set jewellery demand expected to remain weak.

• Gold product sales anticipated to be volatile as prices remain high; continued focus on store consolidation and omni-channel strategy.

• Expansion planned for new gold-diamond collection “YUYU”.