Chow Tai Fook forecasts up to 100% rise in half-year profit
Chow Tai Fook expects interim net profit to rise 90-100% year-on-year, citing fair-value gains from gold loan revaluation and improved core market sales. Third-quarter retail value fell 0.5%, with mainland China down 5.3% but Hong Kong and Macau up 33.2%.
Hong Kong-listed jeweller Chow Tai Fook has issued a profit alert, forecasting that its interim net profit for the six months ending 30 September will rise by approximately 90 to 100 per cent year-on-year, according to a company statement reported by RTHK on 22 October.
The sharp increase is attributed mainly to fair-value gains from the revaluation of gold loan contracts during the period, compared with fair-value losses recorded a year earlier, as well as improved sales in core markets.
In the third quarter ended 30 September, Chow Tai Fook's retail value fell 0.5 per cent year-on-year. The Hong Kong, Macau and other markets segment surged 33.2 per cent, while the mainland China market dropped 5.3 per cent, partly due to network optimisation and a high comparison base from the same period last year. Mainland China accounted for over 83 per cent of total retail value, while Hong Kong, Macau and other markets contributed nearly 17 per cent.
Same-store sales in Hong Kong and Macau rose 29.6 per cent in the quarter, driven by strong consumer sentiment and robust foot traffic, while same-store sales in mainland China increased 2.2 per cent.
As of 30 September, Chow Tai Fook operated 5,192 retail points globally, a net reduction of 242 from the end of June. During the quarter, the company closed 263 Chow Tai Fook jewellery retail points in mainland China while selectively opening 23 new outlets. In Hong Kong, Macau and other markets, it added a net one Chow Tai Fook jewellery retail point.