Chow Sang Sang Company Analysis
CHOW SANG SANG HOLDINGS INTERNATIONAL LIMITED
周生生集團國際有限公司
（Incorporated in Bermuda with limited liability）
(於百慕達註冊成立之有限公司)
Stock code 股份代號 : 116
Company Analysis Report
Conduct by Wu Jing
Nov. 2014
Summary
With the high base of the first half of 2013, Chow Sang Sang’s turnover for the first half-year of 2014 dropped 34% to HK$9,333 million and profit attributable to equity holders declined 15% to HK$520 million, due to the lower gold price and demand for gold products. Operating profit dipped 13% from the prior year; while there is an improvement in margin thanks to the stable gold price and higher percentage of jewelry sales.
Year 2013 is a flourish year, despite of the slowdown of Chinese economy, credit tightening and new administration’s anti-corruption drive. The turnover of 2013 surged 38% and profits rose by 24% driven by consumers’ enthusiasm for gold products sparked by sharp gold price drops in April and June.
2012 was a year in which there was modest growth in revenue from the sales of gold and jewelry, with a rise of 6% in turnover, due to a marked cautiousness in consumer sentiments. The lower gold price and fierce discounting competition have a huge depressing effect on gross margin. Coupled with higher costs, net profits were down by 10%.
The strong growth in the company’s jewelry retail drove the 2011’s total turnover increased by 47% regardless of central government’s inflation-curbing, uncertain economic outlook and higher gold price.
The company’s turnover is subject to gold price volatility and consumer’s demand for gold products, while its profit is susceptible to increasing costs and fierce competition.
Economy analysis
Mainland
Chinese economy has been slowing down since 2010, with real GDP growth declining from 10.4% in 2010 to 7.4% for the first half-year of 2014 and Real growth of GDP per capita down from 9.9% in 2010 to 7.2% in 2013. Real interest rate kept growing from -0.8% in 2010 to 4.2% in 2013, while annual
周生生集團國際有限公司
（Incorporated in Bermuda with limited liability）
(於百慕達註冊成立之有限公司)
Stock code 股份代號 : 116
Company Analysis Report
Conduct by Wu Jing
Nov. 2014
Summary
With the high base of the first half of 2013, Chow Sang Sang’s turnover for the first half-year of 2014 dropped 34% to HK$9,333 million and profit attributable to equity holders declined 15% to HK$520 million, due to the lower gold price and demand for gold products. Operating profit dipped 13% from the prior year; while there is an improvement in margin thanks to the stable gold price and higher percentage of jewelry sales.
Year 2013 is a flourish year, despite of the slowdown of Chinese economy, credit tightening and new administration’s anti-corruption drive. The turnover of 2013 surged 38% and profits rose by 24% driven by consumers’ enthusiasm for gold products sparked by sharp gold price drops in April and June.
2012 was a year in which there was modest growth in revenue from the sales of gold and jewelry, with a rise of 6% in turnover, due to a marked cautiousness in consumer sentiments. The lower gold price and fierce discounting competition have a huge depressing effect on gross margin. Coupled with higher costs, net profits were down by 10%.
The strong growth in the company’s jewelry retail drove the 2011’s total turnover increased by 47% regardless of central government’s inflation-curbing, uncertain economic outlook and higher gold price.
The company’s turnover is subject to gold price volatility and consumer’s demand for gold products, while its profit is susceptible to increasing costs and fierce competition.
Economy analysis
Mainland
Chinese economy has been slowing down since 2010, with real GDP growth declining from 10.4% in 2010 to 7.4% for the first half-year of 2014 and Real growth of GDP per capita down from 9.9% in 2010 to 7.2% in 2013. Real interest rate kept growing from -0.8% in 2010 to 4.2% in 2013, while annual