easyplaytoearnnftgames| Summary of the performance of the gold and jewelry industry in 202324Q1: Leading operations are stable and fluctuations in gold prices bring profit elasticity

In 2023, the upward price of gold pushed the release of demand, and the leading channel of gold jewelry expanded smoothly.EasyplaytoearnnftgamesThe price of gold rose in 2023, with an increase of more than 10% for the whole year. The high boom in gold brought about growth on the consumer side. The total consumption of gold in China was 1089 in 2023.Easyplaytoearnnftgames.7 tons, year-on-year + 8Easyplaytoearnnftgames.78%, of which: gold jewelry 706.5 tons, year-on-year + 7.97%, gold bars and coins 299.6 tons, + 15.7% year-on-year. Under the steady operation of the gold jewelry sector and the steady rising trend of gold prices, the sales of terminal gold products are growing rapidly, the performance of the brand side is strengthened by joining the merchant stock replenishment, the domestic brand channel is expanded smoothly, and the store opening expectation is high in 2024. The change of terminal consumption structure affects the profit level, and the turnover rate promotes ROE: on the demand side, the purchase demand for gold jewelry is better than mosaic jewelry in the context of rising gold prices. The gross profit margin of plain gold & traditional gold jewelry is low and generally stable. The gross profit margin of major brands is maintained at about 10% in 2023. The increase in the proportion of low gross margin products leads to the pressure of low gross profit margin for gold jewelry brands. The gold jewellery leader ROE in 2023 is better than the same period in 2022, and the net interest rate and equity multiplier remain stable, mainly due to the increase in turnover rate to promote ROE growth. The short-term fluctuation of Q1 gold price in 2024 affects terminal consumption.EasyplaytoearnnftgamesQ1 performance growth slowed: overall Q1 gold consumption continued to grow in 2024, with national gold consumption of 308.905 tons in the first quarter, up 5.94% from a year earlier, according to the China Gold Council. Of this total, gold jewelry was 183.92 tons, down 3.0 percent from the same period last year; gold bars and coins were 106.32 tons, up 26.77 percent from the same period last year. The gold consumption structure shows that the gold consumption of Q1 is mainly driven by investment funds. Due to the surge in risk aversion demand, physical gold investment has received higher attention, and the consumption of gold bars and coins with relatively low premium has risen sharply. The price of gold rose sharply in March, restraining the demand for terminal jewelry gold products to a certain extent, while the demand for investment funds increased, and the growth rate of Q1 performance of some targets slowed down. Gold prices are expected to remain strong in the medium to long term, and demand may gradually pick up: under the influence of macro uncertainties such as geographical conflicts superimposed by central bank demand for gold purchases, gold prices are expected to remain strong in the medium to long term. On the one hand, the stabilization of gold prices is expected to lead to the release of some consumption of gold jewelry rigid demand, Qixi Festival, Mid-Autumn Festival-National Day and other key holiday node terminal consumption is expected to resume. On the other hand, the superimposed gold price is expected to support in the medium and long term, and gold consumption is expected to be partially repaired in the second half of the year. Investment advice: based on the medium and long-term gold prices are expected to remain strong, give priority to own production capacity + subjective gold trading Lao Fengxiang (600612.SH), pure direct marketing + investment proportion of high vegetable shares (605599.SH); secondly, it is recommended to pay attention to China Gold (600916.SH), Chao Acer (002345.SZ), Zhou Dasheng (002867.SZ), end-end stores to maintain rapid growth at the end of 2023, is expected to drive toB sales. Risk tips: gold prices fluctuate sharply; terminal consumption is lower than expected; market competition intensifies [disclaimer] this article only represents the views of third parties and does not represent the position of Hexun. Investors operate accordingly, at their own risk.

[disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.