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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; and Business in Hong Kong, Macau, and Other Markets. The company was founded in 1929 and is headquartered in Hong Kong.

Financial Highlights

Mar 2022 HKDUSD
Revenue98,937.70M12,709.61M
Gross Profit23,303.90M2,993.63M
Operating income9,357.10M1,202.02M
Income before tax8,977.20M1,153.21M
Net income6,712.30M862.26M
EBITDA11,370.80M1,460.70M
Diluted EPS0.670.08
Dividends Per Share0.500.06
Total Assets87,737.30M11,203.27M
Total liabilities53,182.60M6,790.94M
Total equity33,619.30M4,292.88M
Operating cash flow13,722.70M1,762.82M
Currency in HKDCurrency in USD

Historical Data

 Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Revenue 59,156.40M 66,660.90M 56,750.80M 70,163.80M 98,937.70M
Gross Profit 16,248.70M 18,719.00M 16,034.80M 20,264.60M 23,303.90M
Operating income 5,347.60M 6,694.50M 5,779.20M 8,354.70M 9,357.10M
Income before tax 5,831.90M 6,352.00M 4,201.00M 8,390.00M 8,977.20M
Net income 4,094.90M 4,576.80M 2,901.00M 6,026.40M 6,712.30M
EBITDA 6,204.10M 7,632.30M 8,137.80M 10,461.90M 11,370.80M
Diluted EPS 0.40 0.45 0.29 0.60 0.67
Dividends Per Share 0.57 0.65 0.24 0.40 0.50
Total Assets 57,569.90M 62,237.10M 65,243.40M 64,308.20M 87,737.30M
Total liabilities 23,472.30M 30,762.80M 38,189.80M 32,740.60M 53,182.60M
Total equity 33,423.40M 30,750.70M 26,343.30M 30,767.10M 33,619.30M
Operating cash flow 2,673.70M 8,168.40M 7,895.70M 10,227.20M 13,722.70M
 Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022
Revenue 7,575.10M 8,500.39M 7,260.26M 9,050.22M 12,709.61M
Gross Profit 2,080.68M 2,386.99M 2,051.36M 2,613.87M 2,993.63M
Operating income 684.77M 853.66M 739.34M 1,077.64M 1,202.02M
Income before tax 746.78M 809.98M 537.44M 1,082.20M 1,153.21M
Net income 524.36M 583.61M 371.13M 777.32M 862.26M
EBITDA 794.44M 973.24M 1,041.08M 1,349.44M 1,460.70M
Diluted EPS 0.05 0.05 0.03 0.07 0.08
Dividends Per Share 0.07 0.08 0.03 0.05 0.06
Total Assets 7,335.36M 7,928.34M 8,417.52M 8,271.73M 11,203.27M
Total liabilities 2,990.76M 3,918.85M 4,927.14M 4,211.30M 6,790.94M
Total equity 4,258.69M 3,917.31M 3,398.74M 3,957.46M 4,292.88M
Operating cash flow 342.37M 1,041.61M 1,010.11M 1,319.17M 1,762.82M

Valuation Measures

Mar 2022
PER21.24
ROA8.82%
ROE20.85%
Operating margin9.45%
Profit margin6.78%

Key executives

  • Executive Director, MD-Corporate, HK & Macau: Siu Kee Wong
  • Secretary, Executive Director & Finance Director: Ping-Hei Cheng
  • Head-Information & Communication Centre: Siu-Kwong Tsang
  • Executive Director & MD-Mainland China: Sai Cheong Chan
  • General Manager-Business Strategy & Analytics: Tin-Hei Lee

Shareholders

  • Cheng Yu Tung Family Ltd. (72.3%)
  • CHEN YU WAI (5.0%)
  • Yueford Corp. (5.0%)
  • The Vanguard Group, Inc. (0.4%)
  • BlackRock Fund Advisors (0.3%)
  • Norges Bank Investment Management (0.3%)
  • PineBridge Investments Asia Ltd. (0.2%)
  • State Street Global Advisors Asia Ltd. (0.1%)
  • Hermes Investment Management Ltd. (0.1%)
  • Geode Capital Management LLC (0.1%)

Contact Details

  • Website:http://www.chowtaifook.com
  • Address: 33/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 3 Oct, 2022

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