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

Executive summary

• Revenue for 1H FY2026 was HK$38,986 million, up 1.1% year-over-year, with operating profit at HK$6,823 million, reflecting margin resilience and solid recovery amid a volatile macroeconomic environment.

• 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 optimization, and improved consumer sentiment.

• Brand transformation advanced with new image stores, high jewelry collections, and successful IP collaborations, elevating brand desirability and targeting younger consumers.

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

• Unaudited operational data from October to mid-November 2025 showed Group RSV up 33.9% year-over-year.

Financial highlights

• Revenue reached HK$38,986 million, up 1.1% year-over-year; gross profit margin was 30.5%, down 0.9 pts YoY, supported by a higher mix of fixed-price jewellery.

• Operating profit rose 0.7% to HK$6,823 million, with a record-high margin of 17.5%; net profit attributable to shareholders was HK$2,534 million, flat year-over-year.

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

• Earnings per share increased to HK$0.26.

• Convertible bonds of HK$8,800 million were issued in June 2025 to support business expansion and working capital.

Outlook and guidance

• Management expects continued recovery in 2HFY2026, supported by positive consumer sentiment, ongoing brand transformation, and strategic initiatives.

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

• The Group will maintain financial discipline, prudent cost and capital management, and agility in strategy execution.

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

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