Yamato: Chow Tai Fook (01929.HK) Issues Convertible Bonds to Reduce Financing Costs, Maintains "Buy" Rating

Zhitong Finance APP learned that Daiwa Securities released a research report stating that Chow Tai Fook (01929.HK) announced the issuance of convertible bonds (CB) to raise approximately 8.8 billion yuan, and at the same time conducted a stock repurchase. After adjusting for the stock repurchase, the diluted net equity ratio is 3.7%, and the face interest rate is as low as 0.375%. Compared with the group's current financing cost, it saves 100 to 200 basis points, effectively reducing its financing cost. Management also mentioned that the funds raised will be used in full for the development of the jewelry business, and promised to maintain a dividend payout policy of 70% to 80%.