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Consumer Durables

Chow Tai Fook Jewellery Group Ltd.

  • 6.81 HKD
  • +0.07
  • +1.04%
  • Hong Kong
    Aug 17, 2018
  • Ticker
    HKG(1929)
  • Prev. close
    6.74
  • Market cap (HKD)
    67,400M
  • Market cap (USD)
    8,586.31M
  • 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 2018 HKDUSD
Revenue59,156.40M7,575.10M
Gross Profit16,248.70M2,080.68M
Operating income5,347.60M684.77M
Income before tax5,831.90M746.78M
Net income4,094.90M524.36M
EBITDA6,204.10M794.44M
Diluted EPS0.400.05
Dividends Per Share0.570.07
Total Assets57,569.90M7,335.36M
Total liabilities23,472.30M2,990.76M
Total equity33,423.40M4,258.69M
Operating cash flow2,673.70M342.37M
Currency in HKDCurrency in USD

Historical Data

 Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018
Revenue 77,407.10M 64,277M 56,591.50M 51,245.50M 59,156.40M
Gross Profit 21,012.20M 19,490.40M 16,142.10M 14,855.50M 16,248.70M
Operating income 0 7,177M 4,520.80M 4,562.60M 5,347.60M
Income before tax 9,166.20M 6,669.90M 3,939.70M 4,388M 5,831.90M
Net income 7,272M 5,456M 2,941.40M 3,055.30M 4,094.90M
EBITDA 10,108.90M 7,963.20M 5,420.50M 5,402.60M 6,204.10M
Diluted EPS 0.72 0.54 0.29 0.30 0.40
Dividends Per Share 0.36 0.28 0.80 0.51 0.57
Total Assets 61,817.10M 61,121M 55,675.40M 49,401.90M 57,569.90M
Total liabilities 23,364.70M 20,580.20M 19,925.50M 16,900.40M 23,472.30M
Total equity 37,173.30M 39,429.50M 34,904.30M 31,798.80M 33,423.40M
Operating cash flow -5,472.20M 7,295.80M 13,752.30M 6,123.20M 2,673.70M
 Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018
Revenue 9,978.39M 8,289.67M 7,295.24M 6,604.67M 7,575.10M
Gross Profit 2,708.64M 2,513.63M 2,080.88M 1,914.62M 2,080.68M
Operating income 0 925.60M 582.77M 588.04M 684.77M
Income before tax 1,181.59M 860.20M 507.86M 565.53M 746.78M
Net income 937.41M 703.64M 379.17M 393.77M 524.36M
EBITDA 1,303.11M 1,026.99M 698.75M 696.30M 794.44M
Diluted EPS 0.09 0.07 0.03 0.03 0.05
Dividends Per Share 0.04 0.03 0.10 0.06 0.07
Total Assets 7,969.15M 7,883.47M 7,177.85M 6,356.80M 7,335.36M
Total liabilities 3,012.05M 2,654.46M 2,568.86M 2,174.66M 2,990.76M
Total equity 4,792.19M 5,085.67M 4,499.97M 4,091.71M 4,258.69M
Operating cash flow -705.41M 940.92M 1,772.81M 789.17M 342.37M

Valuation Measures

Mar 2018
PER21.85
ROA7.65%
ROE12.55%
Operating margin9.03%
Profit margin6.92%

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%)
  • Henderson Global Investors Ltd. (0.2%)
  • The Vanguard Group, Inc. (0.2%)
  • DJE Kapital AG (0.2%)
  • Pictet Asset Management SA (0.2%)
  • FIL Investment Management (Hong Kong) Ltd. (0.2%)
  • Value Partners Ltd. (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: +852.2526.8649

Related Companies

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  • Chow Tai Fook Jewellery Co. Ltd.
  • Fu An Jewellery Sdn. Bhd.

Competitors

    Last Updated on 17 Aug, 2018

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