Chow Sang Sang: jewelry retail market bottomed out

(0116) announced interim results during the period, the turnover of 8.012 billion yuan, an increase of 3%; corporate equity holders accounted for profit of about 392 million yuan, an increase of 8%. Basic earnings per share of 57.9 cents by 8%, medium interest rate increased by 1 cents to send 9 cents, the dividend payout ratio increased by one percentage point to 16%.

Operating profit recovery is positive

Management pointed out that the first half of the impact of global and local economic climate events are relatively small, the property market and the stock market have shown a strong momentum, favorable consumer desire. Despite the softening of the renminbi against the Hong Kong dollar, the decline in mainland visitors has been halted, accounting for 87% of the Group’s turnover of jewelry retail, operating profit after three years of decline after the positive growth, up 4% to 500 million yuan.

In terms of retail sales, sales in Hong Kong and Macau recorded a 5% decline, of which 4% could be attributed to the closure of the store. During the same period, same-store sales fell 3%, but in the first half of the six months, three months recorded same-store sales growth, including June. Compared to the same period in 2016 same-store sales fell 26%, the downward trend seems to have bottomed out.

Inlaid jewelry sales since 2016 has not yet reversed the downward trend. During the period, there were three Chow Sang Sang shops and another new store in Tung Chung. Macau is still suffering from a weaker passenger flow. The store in the mall is bigger than the street store.

Rent expenses reduced by 52 million

The Group’s total rental expenses decreased by RMB52 million from last year. The rent for the first half of the lease has been adjusted between 6% and 65%. Three large stores in the tourist area will be renewed next year. During the period, capital expenditure was $ 14 million, mostly for new stores and shops.