Chow Tai Fook Jewellery Shares Rise Sharply on Strong Results, Outlook

By Megan Cheah

Shares of Chow Tai Fook Jewellery Group soared to their highest level in more than three months after the jewelry retailer reported strong annual profit on higher gold prices and projected sustained revenue growth.

The stock surged as much as 19% to 13.18 Hong Kong dollars on Friday before paring gains slightly by the midday break. The shares remain on track for their largest one-day percentage gain since the retailer's listing in 2011.

The jewelry company is part of the Hong Kong-based Cheng family's privately held conglomerate that also controls property company New World Development.

Chow Tai Fook's net profit for the year ended March rose 52% to HK$9.00 billion, equivalent to US$1.15 billion, with its wider gross profit margin partially supported by higher gold prices, the company said late Thursday. Full-year revenue rose 5.3%.

The company also outlined its goals for the coming years. By fiscal 2030, it aims to achieve above-market revenue growth and to sustain a high return of equity of above 25%.

Chow Tai Fook reiterated its ambitious outlook in a presentation with analysts, with management saying, "We are confident to deliver sustainable and meaningful growth in same-store and top-line growth in the next three years."

Citi analysts said while its annual results were largely in-line with expectations, Chow Tai Fook's sales and margin guidance for the new fiscal year were stronger than they expected.

Chow Tai Fook's brand transformation efforts--focusing on higher-margin luxury and self-operated store formats and boosting its fixed-price products with more signature collections--appear to be bearing fruit, said the Citi analysts led by Tiffany Feng.

Citi raised its fiscal 2027-2028 net profit forecasts for Chow Tai Fook by 8%-9% but reduced its valuation multiple on softer market sentiment, resulting in a trimmed target price of HK$15.40 from HK$16.70.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

June 12, 2026 01:05 ET (05:05 GMT)