Chow Tai Fook flags near-doubling in interim profit
HK01 · 3 SOURCESabout 3 hours ago2 MIN
Summary
Chow Tai Fook Jewellery said net profit for the six months ended September 30 is expected to increase by about 90% to 100% from a year earlier, after fair value gains on revaluation of gold loan contracts replaced losses booked in the same period last year, alongside improving sales in its core markets. The company earned HK$2.534 billion in the corresponding period a year ago. For the three months to September 30, overall retail value slipped 0.5%, as a 33.2% rise in Hong Kong, Macau and other markets partly offset a 5.3% decline in mainland China. Same-store sales in Hong Kong and Macau rose 29.6%, with Hong Kong up 24% and Macau up 47.3%, supported by strong consumer sentiment and foot traffic.
Key Points
- Chow Tai Fook expects interim net profit for the half-year ended September 30 to rise about 90% to 100%, after fair value gains on gold loan contracts and better core-market sales.
- In the same period last year, the jeweller reported profit of HK$2.534 billion, providing the base for the latest earnings guidance.
- For the latest quarter, overall retail value fell 0.5%; mainland China dropped 5.3%, while Hong Kong, Macau and other markets grew 33.2%.
- Same-store sales rose 2.2% at mainland self-operated stores, fell 2.9% at franchise stores, and climbed 29.6% in Hong Kong and Macau.
- During the quarter, the group opened 23 mainland outlets and closed 263, for a net reduction of 240 stores; Hong Kong, Macau and other markets added one net store.
Why It Matters
For Hong Kong readers, the sharp rebound in Hong Kong and Macau same-store sales suggests local luxury and jewellery spending has strengthened even as the group continues to streamline its much larger mainland network. The earnings guidance also indicates that movements in gold-related accounting items can materially affect reported profit, beyond underlying store sales performance.