Chow Tai Fook shares jump on rebound in gold jewelry demand
Chow Tai Fook’s gold jewelry business bounced back as shoppers returned to weight-based pieces, pushing profit to a record HK$9.0 billion and lifting the shares as much as 19%.
Chow Tai Fook Jewellery Group’s shares jumped after demand recovered in its weight-based gold jewelry business. The rebound helped same-store sales beat expectations and pushed annual profit to a record HK$9,004 million for the year ended March 31, 2026.
Revenue rose 5.3 percent to HK$94,398 million, operating profit increased 27.8 percent to HK$18,850 million, and gross profit margin widened to 32.3 percent, up 280 basis points. Operating profit margin climbed to 20.0 percent, a five-year high, while the board proposed a final dividend of HK$0.45 per share, bringing the full-year payout to HK$0.67 per share.
The shares rose 15 percent, and at one point surged as much as 19 percent to HK$13.18 before easing by the midday break. Chief financial officer Karen Yih said higher gold prices lifted overall profit margins and boosted gross profits from weight-based gold products. The company is also benefiting from growing demand for design-led, high-margin jewelry, especially in higher-tier Chinese cities and international markets. The transformation started in April 2024 with the Rouge Collection, launched for the company’s 95th anniversary, and later expanded with the DAWN Collection. Chow Tai Fook said the DAWN Collection is its first jewelry brand line blending Chinese aesthetics with modern craftsmanship.
In October 2025, Chow Tai Fook said same-store sales had rebounded across mainland China and Hong Kong and Macau, helped by stronger fixed-price products and improving weight-based gold sales. Mainland China gold product same-store sales rose 11 percent, while gold product same-store sales in Hong Kong and Macau increased 10 percent. Citi said fiscal 2027 guidance looked stronger than expected on both sales and margins, and Chow Tai Fook is now aiming for above-market revenue growth and return on equity above 25 percent by fiscal 2030.
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