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Consumer Durables

Chow Tai Fook Jewellery Group Ltd.

Company Background

Chow Tai Fook Jewellery Group is one of the world's largest jewelry companies, with total assets of around $8 billion. The company operates more than 2,200 stores across 500 cities worldwide including Hong Kong, mainland China, the U.S., Singapore, Malaysia and South Korea. It is also strengthening its e-commerce business. The jeweler was founded in 1929 and listed on the Hong Kong Exchange in 2011. It has a workforce of more than 34,000.

The company's core business is manufacturing and sales of gem-set, gold, platinum and karat gold products. It manages a vertically integrated business model which engages in everything from raw materials procurement, design and production to marketing and sales through its retail networks. Chow Tai Fook operates four diamond cutting and polishing factories and 10 jewelry factories. In 2014, it acquired U.S.-based luxury-brand diamond company Hearts On Fire to expand its business platforms.

Hong Kong conglomerate Chow Tai Fook (Holdings), led by billionaire Henry Cheng Kar-shun, has a majority stake in Chow Tai Fook Jewellery Group. Cheng also leads Hong Kong-listed New World Development, a diversified company focused on property development, hotels, department stores, infrastructure and service.

Business Summary

Chow Tai Fook Jewellery Group Ltd. operates as an investment holding company, which engages in the sale of jewellery through its subsidiaries. It operates through the following segments: Jewellery Business in the Mainland China; Watch Business in the Mainland China; and Business in Hong Kong, Macau, and Other Markets. The company was founded in 1929 and is headquartered in Hong Kong.

Financial Highlights

Mar 2020 HKDUSD
Revenue56,750.80M7,260.26M
Gross Profit16,034.80M2,051.36M
Operating income5,779.20M739.34M
Income before tax4,201.00M537.44M
Net income2,901.00M371.13M
EBITDA8,137.80M1,041.08M
Diluted EPS0.290.03
Dividends Per Share0.240.03
Total Assets65,243.40M8,417.52M
Total liabilities38,189.80M4,927.14M
Total equity26,343.30M3,398.74M
Operating cash flow7,895.70M1,010.11M
Currency in HKDCurrency in USD

Historical Data

 Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020
Revenue 56,591.50M 51,245.50M 59,156.40M 66,660.90M 56,750.80M
Gross Profit 16,142.10M 14,855.50M 16,248.70M 18,719.00M 16,034.80M
Operating income 4,530.60M 4,562.60M 5,347.60M 6,694.50M 5,779.20M
Income before tax 3,939.70M 4,388.00M 5,831.90M 6,352.00M 4,201.00M
Net income 2,941.40M 3,055.30M 4,094.90M 4,576.80M 2,901.00M
EBITDA 5,430.30M 5,402.60M 6,204.10M 7,632.30M 8,137.80M
Diluted EPS 0.29 0.30 0.40 0.45 0.29
Dividends Per Share 0.80 0.51 0.57 0.65 0.24
Total Assets 55,675.40M 49,401.90M 57,569.90M 62,237.10M 65,243.40M
Total liabilities 19,925.50M 16,900.40M 23,472.30M 30,762.80M 38,189.80M
Total equity 34,904.30M 31,798.80M 33,423.40M 30,750.70M 26,343.30M
Operating cash flow 13,752.30M 6,123.20M 2,673.70M 8,168.40M 7,895.70M
 Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020
Revenue 7,295.24M 6,604.67M 7,575.10M 8,500.39M 7,260.26M
Gross Profit 2,080.88M 1,914.62M 2,080.68M 2,386.99M 2,051.36M
Operating income 584.04M 588.04M 684.77M 853.66M 739.34M
Income before tax 507.86M 565.53M 746.78M 809.98M 537.44M
Net income 379.17M 393.77M 524.36M 583.61M 371.13M
EBITDA 700.02M 696.30M 794.44M 973.24M 1,041.08M
Diluted EPS 0.03 0.03 0.05 0.05 0.03
Dividends Per Share 0.10 0.06 0.07 0.08 0.03
Total Assets 7,177.85M 6,356.80M 7,335.36M 7,928.34M 8,417.52M
Total liabilities 2,568.86M 2,174.66M 2,990.76M 3,918.85M 4,927.14M
Total equity 4,499.97M 4,091.71M 4,258.69M 3,917.31M 3,398.74M
Operating cash flow 1,772.81M 789.17M 342.37M 1,041.61M 1,010.11M

Valuation Measures

Mar 2020
PER18.92
ROA4.55%
ROE10.16%
Operating margin10.18%
Profit margin5.11%

Key executives

  • Managing Director & Executive Director: Siu Kee Wong
  • Secretary, Executive Director & Finance Director: Ping-Hei Cheng
  • Head-Information & Communication Centre: Siu-Kwong Tsang
  • General Manager-Business Strategy & Analytics: Tin-Hei Lee
  • General Manager-Branding & Marketing Functions: Yee-Pong Chan

Shareholders

  • Cheng Yu Tung Family Ltd. (72.3%)
  • The Vanguard Group, Inc. (0.4%)
  • Hermes Investment Management Ltd. (0.3%)
  • PineBridge Investments Asia Ltd. (0.2%)
  • FIL Investment Management (Singapore) Ltd. (0.2%)
  • Allianz Global Investors Asia Pacific Ltd. (0.2%)
  • Value Partners Ltd. (0.1%)
  • Robeco Institutional Asset Management BV (0.1%)
  • Eastspring Investments (Singapore) Ltd. (0.1%)
  • Norges Bank Investment Management (0.1%)

Contact Details

  • Website:http://www.chowtaifook.com
  • Address: 38/F, New World Tower, 16-18 Queen's Road Central, Hong Kong, Hong Kong
  • Phone: +852.2526.8649

Related Companies

  • Chow Tai Fook Jewellery (Shenyang) Co., Ltd.
  • Beijing Chow Tai Fook Jewellery Co., Ltd.
  • Vms Investment Fund
  • Health4U Solutions Sdn. Bhd.
  • Regent Sunny Ltd.
  • Sincere Elite Ltd.
  • Chow Tai Fook Jewellery Co. Ltd.
  • ENZO Jewelry, Inc.
  • Fu An Jewellery Sdn. Bhd.

Competitors

  • Chow Tai Seng Jewelry Co. Ltd. Class A
Last Updated on 28 Oct, 2020

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