Jewelry major stocks Chou Tai Fuku Shares soared 15% on Friday after posting their best performance ever for the fiscal year that ended in March.
The Hong Kong company achieved a record profit attributable to shareholders of HK$9 billion ($1.15 billion), an increase of more than 50% year on year.
Operating profit was HK$18.9 billion, an increase of 27.8% compared to the same period last year.
Karen Yee, chief financial officer of Chow Tai Fook, told CNBC’s “Squawk Box Asia” on Friday that higher gold prices increased overall profit margins and boosted the gross profit of gold products by weight.
As China’s economy continues its K-shaped recovery, Chou Tai Fook is also benefiting from the growing demand for design-driven products, Yi added.
“Our high-margin, fixed-price jewelry is selling very well,” she said, pointing to strong demand in China’s upscale cities and international markets. “However, such demand tends to be more resilient even when gold prices are volatile,” she added.
Chou Tai Fook stock price chart.
Chow Tai Fook’s fiscal year 2027 outlook also beat expectations for both sales and profit margins, according to City Notes on Thursday. Same-store sales growth in April and May also exceeded expectations, supported by a recovery in demand in the weight-based gold jewelry business amid falling gold prices.
Citi estimated that Chow Tai Fook’s net profit margin could increase in 2027 due to its plans to open more self-operated luxury stores and its own signature jewelry collection.
gold It has fallen about 20% since the start of the Iran war, although it rose in late 2025 and early 2026 as investors sought security amid macroeconomic and geopolitical uncertainty.
Chow Tai Fook stock recently traded up 15.38%.
