Back to Markets
Commodities● Neutral
Chow Tai Fook Shares Jump 15% on Record Profit, Gold Tailwind
Chow Tai Fook posted a record HK$9B profit, up 50%, boosted by gold price strength. Guidance beat expectations, sending shares 15% higher. CFO cites resilient demand for design-led jewelry.
Continue with
Shares of jewelry giant Chow Tai Fook surged 15% on Friday after the company reported a record profit for its financial year ended March and issued guidance that beat analyst expectations.
The Hong Kong-listed firm posted profit attributable to shareholders of 9 billion Hong Kong dollars, up more than 50% year over year. Operating profit came in at 18.9 billion Hong Kong dollars, a 27.8% increase.
Higher gold prices helped lift margins, especially on weight-based gold products, Chief Financial Officer Karen Yih told CNBC. Chow Tai Fook is also benefiting from growing demand for higher-margin design-led jewelry, Yih said. “Our high-margin fixed-price jewelry sells exceptionally well,” she said, noting strong demand in higher-tier Chinese cities and international markets. “Even though, when [the] gold price is volatile, these demands tend to be more resilient.”
The company’s 2027 financial year guidance on both sales and margins exceeded expectations, according to a Citi note. Same-store sales growth in April and May also surprised to the upside, boosted by a demand recovery in weight-based gold jewelry after a pullback in gold prices. Citi estimated Chow Tai Fook could see net profit margin growth in 2027 on plans to open more luxury and self-operated stores, along with its signature jewelry collections.
Gold rallied through late 2025 and into early 2026 as investors sought safe havens during the Iran conflict. It has since dropped roughly 20% from its peak. Yih said the demand for design-led jewelry remains resilient even when gold is volatile, which could help insulate earnings if prices stay weak.
Chow Tai Fook shares last traded 15.38% higher.
Investors tracking gold’s path can monitor its profile for supply-demand signals that feed into jewelry margins. The drop in gold from Iran-war highs has pulled the metal back to levels that revived weight-based sales in April and May, a pattern that may repeat if prices stay near current levels. Citi’s note, which lifted estimates on store-expansion plans, suggests the market is pricing in margin improvement even without a gold rally.