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.

• Gross profit margin was 30.5%, slightly down from 31.4% in 1HFY2025, but supported by a higher mix of fixed-price jewellery and gold price appreciation.

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

• Brand transformation initiatives, including new image stores, expanded signature collections, and the launch of the first High Jewellery Collection, contributed to sales growth and elevated brand desirability.

Financial highlights

• Revenue: HK$38,986 million, up 1.1% year-over-year; Mainland revenue declined 2.5%, while Hong Kong, Macau & other markets grew 6.5%.

• Operating profit: HK$6,823 million, up 0.7% year-over-year; operating profit margin reached a five-year high of 17.5%.

• Gross profit margin: 30.5% (down from 31.4% in 1HFY2025); net profit attributable to shareholders was HK$2,534 million, flat year-over-year.

• 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.

Outlook and guidance

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

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

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

• Full-year CapEx guidance remains below 1% of revenue.

• Targeted full-year SG&A ratio at 13.6%-13.7%.