Chow Tai Fook Jewellery Group (1929) H1 2026 earnings summary

Executive summary

• Revenue for 1HFY2026 was HK$38,986 million, stable year-over-year, with operating profit up 0.7% to HK$6,823 million and an operating margin of 17.5%, a five-year high.

• Same Store Sales (SSS) returned to positive growth: +2.6% in the Mainland and +4.4% in Hong Kong & Macau, driven by brand transformation, product optimisation, and improved consumer sentiment.

• Brand transformation advanced with new image stores, high jewellery collections, and successful IP collaborations targeting younger consumers.

• Interim dividend declared at HK$0.22 per share, with a payout ratio of 85.7%.

• E-commerce and digital engagement drove growth, with livestreaming and social media collaborations contributing to sales.

Financial highlights

• Revenue stable at HK$38,986 million in 1HFY2026, with gross profit margin at 30.5% and operating profit margin at 17.5%.

• Net profit attributable to shareholders was HK$2,534 million, flat year-over-year due to gold loan revaluation losses offsetting operating gains.

• SG&A expenses decreased by 8.8% to HK$5,453 million, with the SG&A ratio improving by 120 bps to 14.0%.

• Earnings per share (basic and diluted) were HK$0.26.

• Free cash flow for 1HFY2026 was HK$6,781 million.

Outlook and guidance

• The Group expects continued recovery in 2HFY2026, supported by improved consumer sentiment and ongoing strategic transformation.

• SSS performance remained solid in the first two months of Q3 FY2026.

• Management will maintain financial discipline and agile strategy refinement to pursue sustainable, high-quality earnings.

• CapEx guidance for FY2026 remains below 1% of revenue.

• Expect stronger cash flow generation in H2 due to seasonality and business recovery.