HKEX | 1929
Chow Tai Fook FY19 profit up 11.8% yoy to HK$4.6B, expects low single digit SSSG in Hong Kong and Macau
Chow Tai Fook (1929) Managing Director Kent Wong said that the company plans to set up 500 new stores in FY2020, which will be mainly opened in newly developed cities in Mainland China, and will be mainly based on franchised stores. 6-7 new stores are expected to open in Hong Kong and Macau.
Wong explains that the target for the next 3-5 years will be to maintain market share in the Chinese market. Since the growth of new cities gradually outruns that of Tier 1 and Tier 2 cities, efforts will be continually put in this regard. In terms of overseas store opening plans, Peter Suen, Executive Director of the comoany, added that he will focus on the Korean and Japanese markets and plan to enter the Thai market in the future.
For the same-store sales performance next year, Wong pointed out that the external factors are hard to predict in the future. The company will prudently manage its business and inventory. He explains, the slow down of same-store sales in the first quarter this year are due to the high base effect, and it is within expectation, while improvements are forecast in the second half of the year. The company targets a low single same-store sales growth in Hong Kong and Macau.
Chow Tai Fook's profit attributable to shareholders in FY2019 was HK$4.577 billion, up 11.8% year-on-year; earnings per share was HK$ 0.46, final dividend HK$0.2 per share, special dividend HK$0.3 per share, and dividend for FY2019 HK$0.65.
The company's turnover last year was HK$66.661 billion, up 12.7% year-on-year; gross profit was HK$18.602 billion, up 14.7% year-on-year; adjusted gross profit margin was 27.9%, up 0.7 percentage points year-on-year; main operating profit was HK$6.972 billion, up 24.4% year-on-year.