Zhou Dafu Will Close At Least 2 Hongkong Stores

Hongkong jewelry brand Zhou Dafu announced 2015 financial results. In the last fiscal year ended March, Zhou Dafu's net profit was HK $5 billion 460 million (US $704 million), which failed to achieve the expected HK $5 billion 900 million, or 25%.

The drop was the worst in five months.

It is mainly affected by the continued cold market in Hongkong and Macao.

Sales figures for Hongkong's retail industry have not improved. They are mainly affected by the significant decline in sales of jewellery, watches and clocks and precious gifts, reflecting the weakening consumption of luxury goods in Hong Kong.

The statistics office of the Special Economic Zone released the number of retail sales in April. The total retail sales volume fell by 2.2% compared with the same month last year. Jewellery, clocks and watches and the most expensive gifts fell the most, down 19.5% from the same period last year.

According to statistics, Zhou Shengsheng, a jewellery listed company, has reduced sales in Hongkong in the first five months, and the company said it will develop its mainland business in the future.

While the fourth quarter sales of Lufu group fell by 20% while the Hong Kong and Macao market fell by 22%.

In the 2015 fiscal year, the comparable store sales in Zhou Dafu, Hong Kong and Macao fell by 32.8% compared with the previous fiscal year, while mainland China fell by only 16.1%.

Benefited from the opening of new Chinese mainland, the loss of brand profit was controlled by 17%, to HK $64 billion.

Obviously, this year's consumption desire in Hong Kong and Macao has been showing signs of fatigue. The analysis team headed by Spencer Leung, an analyst at UBS group, commented that "there is no sign of warming up yet."

Brand year-on-year stores in Hongkong in April and May

It has not yet been announced.

Although closing Hongkong stores can increase profits, it is likely to damage revenue in fiscal year 2016.

"We will pay more attention to the company's future," Liang Yuchang wrote in a memorandum on Friday.

As a company contributing 45% of its performance.

It is likely to enter a new era due to the reduction of tourism market. "

According to Bloomberg analyst Catherine Lim, Hongkong Zhou Dafu is cutting the price of some diamonds and jewellery to reduce inventories.

UBS group said that the brand plan will expand the mainland market by adding 160 sales points, slowing down compared with the 180 net sales outlets in fiscal 2015.

At the same time, the company also plans to strengthen.

And the retail network between two cities in Hongkong.

China International Capital Co expects sales in Hongkong and Macao to continue to drag on the overall performance in fiscal year 2016.

However, analyst Guo Rui said in Monday's report that sales in mainland China will remain stable and look forward to a better performance in the second half of the fiscal year.

With the announcement of earnings, the stock price fell 4.5% yesterday morning, closing at HK $8.58, or 6.5%.

This is the biggest decline since January 9th.

Over the same period, Hongkong's Hang Seng index increased by 0.2%.

Even though Chow Tai Fook 60% profits from mainland China consumers, investors still think the jewelry retail brand is Hongkong's shareholding in Hongkong.

Zhou Dafu's P / E ratio is 13.8 times, and its historical long-term average p / E is 14.2 times.

At the competitor level, Tiffany&Co.'s profit in the first quarter was better than expected, and its share price rose 11%.

In the first quarter of April 30th, net profit fell 16.5% to 104 million 900 thousand US dollars in the same period last year, compared with 125 million 600 thousand US dollars in the same period last year. At the end of March, the group posted a 30% decline in net profit in the first quarter when it released its 2014 fiscal year results.