Jeweller Chow Tai Fook Profit Jumps 108%, Eyes Expansion
Chow Tai Fook store, Hong Kong. Shutterstock.
Hong Kong-listed Chow Tai Fook Jewellery Group Ltd reported a forecast-beating 108 percent jump in annual profit on Tuesday, thanks to one-off Covid-19 related rent concessions, an unrealised gain on gold loans and foreign exchange gains.
China’s largest jeweller by market value said net profit surged to HK$6.03 billion ($777 million) from HK$2.9 billion in 2019. That compared to a forecast of HK$5.23 billion profit by 14 analysts, Refinitiv SmartEstimate data showed.
It was the highest annual profit since 2014.
A Covid-19 related rent concession amounted to HK$127.6 million as compared to HK$16.2 million in fiscal 2020, while net foreign exchange gain amounted to HK$336.4 million against HK$234 million loss in a year ago period.
Revenue for the year to March 31 rose 23.6 percent to HK$70.16 billion from HK$56.75 billion a year earlier, driven by retail expansion amid improving consumer sentiment in mainland China and a softer gold price in the second half of the fiscal year.
