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 2023	HKD	USD
Revenue	94,684.40M	12,079.02M
Gross Profit	22,731.90M	2,899.94M
Operating income	8,982.00M	1,145.84M
Income before tax	7,446.20M	949.92M
Net income	5,384.40M	686.89M
EBITDA	11,182.50M	1,426.56M
Diluted EPS	0.53	0.06
Dividends Per Share	1.22	0.15
Total Assets	87,340.50M	11,126.25M
Total liabilities	53,980.70M	6,876.56M
Total equity	32,397.40M	4,127.08M
Operating cash flow	9,699.40M	1,237.36M
	Currency in HKD	Currency in USD

Historical Data

HKD | USD

	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Revenue	66,660.90M	56,750.80M	70,163.80M	98,937.70M	94,684.40M
Gross Profit	18,719.00M	16,034.80M	20,264.60M	23,303.90M	22,731.90M
Operating income	6,694.50M	5,779.20M	8,354.70M	9,357.10M	8,982.00M
Income before tax	6,352.00M	4,201.00M	8,390.00M	8,977.20M	7,446.20M
Net income	4,576.80M	2,901.00M	6,026.40M	6,712.30M	5,384.40M
EBITDA	7,632.30M	8,137.80M	10,461.90M	11,370.80M	11,182.50M
Diluted EPS	0.45	0.29	0.60	0.67	0.53
Dividends Per Share	0.65	0.24	0.40	0.50	1.22
Total Assets	62,237.10M	65,243.40M	64,308.20M	87,737.30M	87,340.50M
Total liabilities	30,762.80M	38,189.80M	32,740.60M	53,182.60M	53,980.70M
Total equity	30,750.70M	26,343.30M	30,767.10M	33,619.30M	32,397.40M
Operating cash flow	8,168.40M	7,895.70M	10,227.20M	13,722.70M	9,699.40M

	Mar 2019	Mar 2020	Mar 2021	Mar 2022	Mar 2023
Revenue	8,500.39M	7,260.26M	9,050.22M	12,709.61M	12,079.02M
Gross Profit	2,386.99M	2,051.36M	2,613.87M	2,993.63M	2,899.94M
Operating income	853.66M	739.34M	1,077.64M	1,202.02M	1,145.84M
Income before tax	809.98M	537.44M	1,082.20M	1,153.21M	949.92M
Net income	583.61M	371.13M	777.32M	862.26M	686.89M
EBITDA	973.24M	1,041.08M	1,349.44M	1,460.70M	1,426.56M
Diluted EPS	0.05	0.03	0.07	0.08	0.06
Dividends Per Share	0.08	0.03	0.05	0.06	0.15
Total Assets	7,928.34M	8,417.52M	8,271.73M	11,203.27M	11,126.25M
Total liabilities	3,918.85M	4,927.14M	4,211.30M	6,790.94M	6,876.56M
Total equity	3,917.31M	3,398.74M	3,957.46M	4,292.88M	4,127.08M
Operating cash flow	1,041.61M	1,010.11M	1,319.17M	1,762.82M	1,237.36M

Valuation Measures

Mar 2023
PER	28.93
ROA	6.15%
ROE	16.31%
Operating margin	9.48%
Profit margin	5.68%

Management

Executive Director, MD-Corporate, HK & Macau: Siu Kee Wong
Chief Operating Officer: Annie Wong
Secretary, Executive Director & Finance Director: Ping-Hei Cheng
Head-Information & Communication Centre: Siu-Kwong Tsang
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. (0.6%)
Norges Bank Investment Management (0.6%)
BlackRock Fund Advisors (0.5%)
Hermes Investment Management Ltd. (0.2%)
Bank of Communications Schroder Fund Management Co., Ltd. (0.2%)
BlackRock Advisors (UK) Ltd. (0.2%)
PineBridge Investments Asia Ltd. (0.2%)

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

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Competitors

Fujian Ideal Jewellery Industrial Co., Ltd. Class A
Chow Tai Seng Jewelry Co. Ltd. Class A
Kuber Resources Corporation

Last Updated on 22 Sep, 2023