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Consumer Durables

Chow Tai Fook Jewellery Group Ltd.

  • 10.36 HKD
  • +0.22
  • +2.17%
  • Hong Kong
    Apr 19, 2018
  • Ticker
    HKG(1929)
  • Prev. close
    10.14
  • Market cap (HKD)
    101,400M
  • Market cap (USD)
    12,919.74M
  • Shares
    10,000M

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 2017 HKDUSD
Revenue51,245.50M6,604.67M
Gross Profit14,855.50M1,914.62M
Operating income4,562.60M588.04M
Income before tax4,388M565.53M
Net income3,055.30M393.77M
EBITDA5,402.60M696.30M
Diluted EPS0.300.03
Dividends Per Share0.510.06
Total Assets49,401.90M6,356.80M
Total liabilities16,900.40M2,174.66M
Total equity31,798.80M4,091.71M
Operating cash flow6,123.20M789.17M
Currency in HKDCurrency in USD

Historical Data

 Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017
Revenue 57,433.90M 77,407.10M 64,277M 56,591.50M 51,245.50M
Gross Profit 16,006.70M 21,012.20M 19,490.40M 16,142.10M 14,855.50M
Operating income 0 0 7,177M 4,520.80M 4,562.60M
Income before tax 7,095M 9,166.20M 6,669.90M 3,939.70M 4,388M
Net income 5,505.30M 7,272M 5,456M 2,941.40M 3,055.30M
EBITDA 7,326.20M 10,108.90M 7,963.20M 5,420.50M 5,402.60M
Diluted EPS 0.55 0.72 0.54 0.29 0.30
Dividends Per Share 0.22 0.36 0.28 0.80 0.51
Total Assets 43,218.60M 61,817.10M 61,121M 55,675.40M 49,401.90M
Total liabilities 9,357.90M 23,364.70M 20,580.20M 19,925.50M 16,900.40M
Total equity 32,925.50M 37,173.30M 39,429.50M 34,904.30M 31,798.80M
Operating cash flow 9,773.40M -5,472.20M 7,295.80M 13,752.30M 6,123.20M
 Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017
Revenue 7,405.13M 9,978.39M 8,289.67M 7,295.24M 6,604.67M
Gross Profit 2,063.79M 2,708.64M 2,513.63M 2,080.88M 1,914.62M
Operating income 0 0 925.60M 582.77M 588.04M
Income before tax 914.78M 1,181.59M 860.20M 507.86M 565.53M
Net income 709.81M 937.41M 703.64M 379.17M 393.77M
EBITDA 944.58M 1,303.11M 1,026.99M 698.75M 696.30M
Diluted EPS 0.07 0.09 0.07 0.03 0.03
Dividends Per Share 0.02 0.04 0.03 0.10 0.06
Total Assets 5,567.50M 7,969.15M 7,883.47M 7,177.85M 6,356.80M
Total liabilities 1,205.50M 3,012.05M 2,654.46M 2,568.86M 2,174.66M
Total equity 4,241.52M 4,792.19M 5,085.67M 4,499.97M 4,091.71M
Operating cash flow 1,260.11M -705.41M 940.92M 1,772.81M 789.17M

Valuation Measures

Mar 2017
PER24.67
ROA5.81%
ROE9.16%
Operating margin8.90%
Profit margin5.96%

Key executives

  • Managing Director & Executive Director: Siu Kee Wong
  • Secretary, Executive Director & Finance Director: Ping-Hei Cheng
  • Head-Information & Communication Centre: Siu-Kwong Tsang
  • Director-Investor Relations & Communications: Danita On

Shareholders

  • Cheng Yu Tung Family Ltd. (89.3%)
  • Norges Bank Investment Management (0.3%)
  • Hermes Investment Management Ltd. (0.3%)
  • The Vanguard Group, Inc. (0.2%)
  • Pictet Asset Management SA (0.2%)
  • DJE Kapital AG (0.1%)
  • FIL Investment Management (Hong Kong) Ltd. (0.1%)
  • Invesco Hong Kong Ltd. (0.1%)
  • Brandes Investment Partners LP (0.1%)
  • Eastspring Investments (Singapore) Ltd. (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: +852.2524.3166

Related Companies

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  • Beijing Chow Tai Fook Jewellery Co., Ltd.
  • Vms Investment Fund
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  • Chow Tai Fook Jewellery Co. Ltd.
  • Fu An Jewellery Sdn. Bhd.

Competitors

    Last Updated on 19 Apr, 2018

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