Chow Tai Fook profit jumps 52.2% to HK$9,004 million in FY2026
Chow Tai Fook Jewellery Group Limited reported a record profit of HK$9,004 million for FY2026, up 52.2% YoY, on the back of a 5.3% revenue increase to HK$94,398 million. Operating profit rose 27.8% to HK$18,850 million, with margins expanding to a five-year high of 20.0%. The group proposed a total dividend of HK$0.67 per share and plans to expand its luxury-format store network to 50 by FY2030.
*this image is generated using AI for illustrative purposes only.
Chow Tai Fook Jewellery Group Limited achieved a record profit attributable to shareholders of HK$9,004 million for the year ended 31 March 2026, reflecting a 52.2% increase from the previous year. The strong performance was driven by successful brand transformation initiatives and higher-margin iconic collections, which helped the group navigate macroeconomic uncertainty and significant gold price volatility. Revenue grew 5.3% to HK$94,398 million, while operating profit surged 27.8% to HK$18,850 million. The Board has proposed a final dividend of HK$0.45 per share, resulting in a full-year dividend of HK$0.67 per share and a payout ratio of 73.4%.
Financial Performance
The group's profitability improved significantly during the year, with gross profit margin expanding by 280 basis points to 32.3%. This expansion was supported by higher gold prices and an increased contribution from the retail business and design-led jewellery. Operating profit margin reached a five-year high of 20.0%, up 360 basis points, driven by strong business performance and disciplined cost management. Return on Equity increased to 28.4%, compared to the 5-year historical average of 20.5%.
| Financial Summary (For the year ended 31 March) | 2026 (HK$ million) | 2025 (HK$ million) | YoY Change |
|---|---|---|---|
| Revenue | 94,398 | 89,656 | +5.3% |
| Gross profit | 30,500 | 26,455 | +15.3% |
| Gross profit margin | 32.3% | 29.5% | +280 bps |
| Operating profit | 18,850 | 14,746 | +27.8% |
| Operating profit margin | 20.0% | 16.4% | +360 bps |
| Profit attributable to shareholders | 9,004 | 5,916 | +52.2% |
| Earnings per share (Basic) | 0.91 | 0.59 | +53.7% |
| Full year dividend per share | 0.67 | 0.52 | N/A |
Strategic Growth and Expansion
The group opened its first global flagship store in Hong Kong in February 2026 and expanded its network of newly designed luxury-format stores in the Chinese Mainland to 8 locations. These new stores delivered productivity approximately 8 to 10 times the average Same Store Sales (SSS). In the Mainland, SSS increased by 6.9% in FY2026, while SSS in Hong Kong and Macao rose by 16.8%, bolstered by the Mainland VAT reform on gold trading. The group plans to expand its network of luxury-format stores in the Mainland from 8 to 50 by FY2030.
International and Lifestyle Expansion
Chow Tai Fook expanded its international footprint with new stores in Singapore, Bangkok, and Australia, bringing the total number of points of sale in Other Markets to 63. The group aims to double the retail sales value of its international operations by FY2030 and establish a footprint of over 100 stores internationally. Additionally, the group entered the luxury lifestyle category with the launch of "Chow Tai Fook Home" and expanded its accessories line, CTF Accessories.
How will the aggressive expansion of luxury-format stores to 50 locations by FY2030 impact capital expenditure and operating leverage in the near term?
Can the group sustain the current 8 to 10 times productivity premium of new flagship stores as the network scales from 8 to 50 locations?
What risks does the strategy to double international retail sales value pose regarding currency fluctuations and varying regional consumer preferences?
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