Market Insights

Chow Tai Fook (01929.HK) announced the annual results for the fiscal year ending March 31, 2024. In the 2024 fiscal year, the group's turnover increased by 14.8% to 108.713 billion Hong Kong dollars. Due to rigorous cost management, the main operating profit grew by 28.9% to 12.163 billion Hong Kong dollars, with the main operating profit margin reaching 11.2%, setting new highs for both turnover and main operating profit. The profit attributable to shareholders increased by 20.7% to 6.499 billion Hong Kong dollars, with earnings per share at 0.65 Hong Kong dollars. The board of directors proposed a final dividend of 0.30 Hong Kong dollars per share, with a total annual dividend of 0.55 Hong Kong dollars per share. The total dividend payout ratio for the 2024 fiscal year is about 84.6%. In the 2024 fiscal year, driven by strong holiday demand and the steady improvement of the benefits of newly opened stores in the past two to four years, the turnover in Mainland China grew by 9.9%. The relevant growth calculated at the same exchange rate for the 2024 fiscal year was 14.1%. In the 2024 fiscal year, the Mainland business accounted for 82.5% of the group's turnover. In Hong Kong, Macau, and other markets, the turnover increased by 45.6% in the 2024 fiscal year, benefiting from the continuous recovery of inbound tourism. In Hong Kong and Macau, the influx of Mainland tourists and the Lunar New Year holiday drove a sustained growth momentum. During the year, the average daily customer flow in stores in Hong Kong and Macau saw a significant year-on-year increase, mainly driven by visits from Mainland tourists. The group's retail value in Hong Kong and Macau grew by 36.7% in the 2024 fiscal year. In the 2024 fiscal year, we opened a net of 2 retail points in Hong Kong and Macau. As of March 31, 2024, we had a total of 87 retail points in Hong Kong and Macau, sufficient to support us in driving high-value growth. We will continue to closely analyze store performance, lease terms, and other data, and reassess new opportunities in the market that are conducive to opening stores. More importantly, we will maintain our competitiveness through product portfolio innovation and customer service. Strong domestic demand and the rise of the middle class continue to support the economic recovery in Southeast Asia, and the return of Mainland tourists has further driven the recovery of the retail industry in the region. The World Bank said in its semi-annual economic outlook that the gross domestic product of developing countries in the Asia-Pacific region is expected to grow by 4.6% in 2024. According to statistics from the Haikou Customs, the duty-free sales in the Hainan Offshore Duty-Free Zone in 2023 saw significant growth, with the number of shoppers growing by 59.9% year-on-year and total sales increasing by 25.4% year-on-year. Measures introduced at the beginning of 2024, such as simplified purchase procedures and the issuance of duty-free consumption coupons, are expected to help the recovery of duty-free consumption in Hainan.

uSMART Group is a leading fintech company that provides intelligent, professional, and exceptional one-stop financial services and solutions. The group is dedicated to integrating technology deeply with finance, offering investment trading services through its all-in-one platform, the uSMART App. This platform covers a range of investment categories, including U.S. stocks, Hong Kong stocks, new stocks, options, futures, fractional shares, and foreign exchange. It also offers wealth management products such as funds, bonds, notes, and the Follow-Easy platform. With a client-centered approach, the group aims to deliver a secure, professional, intelligent, and efficient investment experience. The investment research and asset management teams focus on asset management, wealth management, securities brokerage, and investment banking services, serving ultra-high-net-worth individuals, families, and corporations, and providing comprehensive asset management solutions. Currently, uSMART Group operates two main business areas: securities brokerage and fintech services. Securities brokerage is conducted through its subsidiaries uSMART HK and uSMART Singapore. Initially established in Hong Kong, uSMART Securities holds licenses for Type 1, Type 4, and Type 9 regulated activities issued by the Hong Kong Securities and Futures Commission. uSMART Singapore obtained a Capital Markets Services (CMS) license from the Monetary Authority of Singapore in December 2021. Fintech services are provided by FinSmart Solution, which not only supports the fintech needs of its sister companies uSMART Hong Kong and uSMART Singapore but also develops financial systems for external clients. Despite being less than six months old, the company has already gained industry recognition and partnerships. Since its establishment, uSMART Group has experienced rapid growth, securing investments from well-known Hong Kong consortiums and strategic investments from Chow Tai Fook. The group now has offices and operational centers in Hong Kong and Singapore, and a technology R&D center in Shenzhen, China. Team Introduction Brain ChengChairman of the Board, uSMART Securities Group [image]