Chow Tai Fook (1929) announced the results for the year ended March this year. Profit attributable to shareholders was 4.577 billion yuan, up 11.8% year-on-year. The final dividend was 20 cents, an increase of 33.3% year-on-year, and an extraordinary interest of 30 cents was announced. Taking into account special interest, the annual dividend is 65 sen.
During the period, the turnover was 66.661 billion yuan, up by 12.7% year-on-year. The gross profit was 18.602 billion yuan, up 14.7%. The gross profit margin was 27.9%, up 0.5 percentage points year-on-year. The adjusted gross profit margin was 27.9%, an increase of 0.7. percentage point.
However, in the second half of the past fiscal year, growth will slow down next year. In the second half of the fiscal year, the turnover was 34.402 billion yuan, an increase of 7.4%, and the growth rate of 20% in the first half of the year slowed down.
The company pointed out that the same-store sales growth in the 2019 fiscal year was 3.4%, while same-store sales fell by 3.3%. If the e-commerce business was taken into account, the same store sales decline narrowed to 2.4%, same-store sales growth was 3%; Hong Kong and Macau same-store sales The growth was 8.7%, and the same store sales increased by 1.3%.
Continue to deepen market penetration in secondary cities
The company pointed out that due to uncertainties and a high comparative base effect in the first half of the 2020 fiscal year, it is cautiously optimistic about the business outlook, and expects that the Sino-US trade negotiations will take time to resolve.
However, the Chinese government has introduced a number of measures to revitalize the economy. The following are the adjustments to the deposit reserve. The various tax reduction measures, including loans to SMEs and infrastructure spending, are believed to help ease the impact on the economy and consumer sentiment.
Chow Tai Fook pointed out that in order to gain greater market share and optimize brand competitiveness in the Mainland, it will continue to deepen market penetration in the next three to five years compared to secondary cities and county-level towns.