Understanding the Market | ZHOU LIU FU rose nearly 6% in the afternoon, with rapid growth in gold, silver, and jewelry retail, and the company's profitability leading its peers
ZHOU LIU FU's stock price rose nearly 6% in the afternoon, with an increase of 3.62% as of the time of publication, reported at HKD 40.05, with a transaction volume of HKD 78.9403 million. According to data from the National Bureau of Statistics, the retail sales of gold, silver, and jewelry from January to June increased by 11.3% year-on-year. Guosen Securities expects that demand will continue to grow in the second half of the year driven by improvements in product design and craftsmanship. ZHOU LIU FU ranks among the top five in the Chinese jewelry market, with a total of 4,129 stores, and its franchise business model has driven the overall gross profit margin to 25.9%
According to the Zhitong Finance APP, Zhou Liu Fu (06168) rose nearly 6% in the afternoon, and as of the time of writing, it was up 3.62%, trading at HKD 40.05, with a transaction volume of HKD 78.9403 million.
On the news front, data from the National Bureau of Statistics shows that from January to June, the retail sales of gold, silver, and jewelry increased by 11.3% year-on-year, with the industry accelerating growth after entering a low base period in the same quarter last year. Guoxin Securities pointed out that in the second half of the year, with improvements in product design and craftsmanship on the supply side, and consumers pursuing the preservation of value and self-pleasure in gold jewelry on the demand side, continued growth performance is expected.
According to data from Frost & Sullivan, Zhou Liu Fu has maintained its position among the top five brands in the Chinese jewelry market for eight consecutive years from 2017 to 2024, based on the number of stores in China. For the fiscal year ending December 31, 2024, the company ranks sixth and tenth among all gold and jewelry companies in China in terms of total merchandise transaction volume and revenue from gold jewelry products, with market shares of 6.2% and 1.0%, respectively.
In addition, as of December 31, 2024, Zhou Liu Fu has a total of 4,129 stores, of which approximately 98% are franchise stores, and stores in third-tier and lower-tier cities account for 55.1%, deeply covering the sinking market. The franchise business adopts a dual-track model of "product sales + service fees," with service fees accounting for 29.4% of total revenue from franchise stores in 2024, and the gross profit margin of service fees reaching 97.1%, driving the company's overall gross profit margin to 25.9%, significantly ahead of its peers
