Shares of knickknack big Chow Tai Fook surged 15% on Friday after it posted a file excessive efficiency in its monetary 12 months to the tip of March.
The Hong Kong firm achieved a file excessive revenue attributable to shareholders of $9 billion Hong Kong {dollars} ($1.15 billion) up greater than 50% year-over-year.
Its working revenue was 18.9 billion Hong Kong {dollars}, up 27.8% year-over-year.
Larger gold costs helped to spice up its total revenue margin and lifted the gross earnings of its weight-based gold merchandise, Chow Tai Fook’s chief monetary officer Karen Yih informed CNBC’s “Squawk Field Asia” on Friday.
Chow Tai Fook can also be benefitting from rising demand for its design-led merchandise, as China’s economic system continues its Ok-shaped restoration, Yih added.
“Our high-margin fixed-price jewellery sells exceptionally properly,” she mentioned, noting robust demand in higher-tier Chinese language cities and in worldwide markets. “Though, when [the] gold value is unstable, these calls for are typically extra resilient,” she added.
Chow Tai Fook’s inventory chart.
Chow Tai Fook’s steering for the 2027 monetary 12 months additionally got here in above expectations on each gross sales and margins, in accordance with a Citi be aware on Thursday. Similar-store gross sales progress in April and Might had been additionally stronger than anticipated, buoyed by demand restoration in its weight-based gold jewellery enterprise amid a pullback in gold value.
Citi estimated that Chow Tai Fook may achieve web revenue margin progress in 2027 on plans to open extra luxurious and self-operated shops, in addition to its signature jewellery collections.
Gold noticed a bounce in late 2025 to early 2026 as buyers sought security amid macroeconomic and geopolitical uncertainties, however has dropped about 20% for the reason that begin of the Iran struggle.
Chow Tai Fook shares final traded 15.38% increased.
