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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 2019 HKDUSD
Revenue66,660.90M8,500.39M
Gross Profit18,719.00M2,386.99M
Operating income6,694.50M853.66M
Income before tax6,352.00M809.98M
Net income4,576.80M583.61M
EBITDA7,632.30M973.24M
Diluted EPS0.450.05
Dividends Per Share0.650.08
Total Assets62,237.10M7,928.34M
Total liabilities30,762.80M3,918.85M
Total equity30,750.70M3,917.31M
Operating cash flow8,168.40M1,041.61M
Currency in HKDCurrency in USD

Historical Data

 Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019
Revenue 64,277M 56,591.50M 51,245.50M 59,156.40M 66,660.90M
Gross Profit 18,654.40M 16,142.10M 14,855.50M 16,248.70M 18,719.00M
Operating income 6,341M 4,530.60M 4,562.60M 5,347.60M 6,694.50M
Income before tax 6,669.90M 3,939.70M 4,388M 5,831.90M 6,352.00M
Net income 5,456M 2,941.40M 3,055.30M 4,094.90M 4,576.80M
EBITDA 7,127.20M 5,430.30M 5,402.60M 6,204.10M 7,632.30M
Diluted EPS 0.54 0.29 0.30 0.40 0.45
Dividends Per Share 0.28 0.80 0.51 0.57 0.65
Total Assets 61,121M 55,675.40M 49,401.90M 57,569.90M 62,237.10M
Total liabilities 20,580.20M 19,925.50M 16,900.40M 23,472.30M 30,762.80M
Total equity 39,429.50M 34,904.30M 31,798.80M 33,423.40M 30,750.70M
Operating cash flow 7,295.80M 13,752.30M 6,123.20M 2,673.70M 8,168.40M
 Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019
Revenue 8,289.67M 7,295.24M 6,604.67M 7,575.10M 8,500.39M
Gross Profit 2,405.82M 2,080.88M 1,914.62M 2,080.68M 2,386.99M
Operating income 817.78M 584.04M 588.04M 684.77M 853.66M
Income before tax 860.20M 507.86M 565.53M 746.78M 809.98M
Net income 703.64M 379.17M 393.77M 524.36M 583.61M
EBITDA 919.18M 700.02M 696.30M 794.44M 973.24M
Diluted EPS 0.07 0.03 0.03 0.05 0.05
Dividends Per Share 0.03 0.10 0.06 0.07 0.08
Total Assets 7,883.47M 7,177.85M 6,356.80M 7,335.36M 7,928.34M
Total liabilities 2,654.46M 2,568.86M 2,174.66M 2,990.76M 3,918.85M
Total equity 5,085.67M 4,499.97M 4,091.71M 4,258.69M 3,917.31M
Operating cash flow 940.92M 1,772.81M 789.17M 342.37M 1,041.61M

Valuation Measures

Mar 2019
PER17.34
ROA7.64%
ROE14.26%
Operating margin10.04%
Profit margin6.86%

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. (89.3%)
  • Henderson Global Investors Ltd. (0.5%)
  • Hermes Investment Management Ltd. (0.4%)
  • The Vanguard Group, Inc. (0.2%)
  • PineBridge Investments Asia Ltd. (0.1%)
  • FIL Investment Management (Hong Kong) Ltd. (0.1%)
  • Norges Bank Investment Management (0.1%)
  • JPMorgan Asset Management (Asia Pacific) Ltd. (0.1%)
  • DJE Kapital AG (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

  • 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.
  • Fu An Jewellery Sdn. Bhd.

Competitors

  • Pandora A/S
Last Updated on 11 Nov, 2019

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