The Hong Kong jewelry retailer reported a 50% year-over-year surge in net profit, driven by higher gold prices and strong demand in China.
Chow Tai Fook shares climbed 15% after the company reported a record $1.15 billion net profit for the financial year ending March, up over 50% year-over-year. Operating profit rose 27.8% to 18.9 billion Hong Kong dollars, supported by rising gold prices and robust demand for high-margin jewelry products.
The company’s performance reflects a K-shaped recovery in China’s economy, with strong sales in higher-tier cities and international markets. Demand for fixed-price jewelry remained resilient despite gold price volatility, according to the firm’s CFO.
Citi noted that Chow Tai Fook’s guidance for the 2027 financial year exceeded expectations, with same-store sales growth in April and May surpassing forecasts. Plans to expand luxury and self-operated stores are expected to further boost profit margins.