Cai Jing Wang·2025-11-25 10:37Core Viewpoint - Chow Tai Fook Jewelry Group reported a strong performance for the first half of the 2026 fiscal year, driven by improved consumer sentiment and a recovering jewelry market, achieving a revenue of HKD 38.986 billion and a slight increase in operating profit [1] Financial Performance - The group’s operating profit increased by 0.7% year-on-year to HKD 6.823 billion, with an operating profit margin expanding by 30 basis points to 17.5%, marking a five-year high [1] - Shareholders' profit remained stable at HKD 2.534 billion, and the board declared an interim dividend of HKD 0.22 per share, with a payout ratio of approximately 85.7% [1] Business Development - The group’s brand transformation and store optimization strategies have shown significant results, with same-store sales in core markets rebounding: a 2.6% increase in mainland direct retail points and a 4.8% increase in franchise retail points [1] - Same-store sales in Hong Kong and Macau rose by 4.4%, with Macau experiencing a notable increase of 13.7% [1] - The product mix continues to improve, with high-margin priced jewelry performing exceptionally well; the retail value contribution from the mainland market increased from 27.4% to 31.8% [1] - Iconic series such as the Palace Museum series and Chuanfu achieved total sales of HKD 3.4 billion, and sales of jade products doubled year-on-year [1] - The launch of the first high-end jewelry series "He Mei Dong Fang" in June marked an important milestone in the brand transformation [1] Channel Expansion - The group opened three new flagship stores in Beijing, Shijiazhuang, and Macau, bringing the total to eight, with monthly sales consistently exceeding the average in those regions [1] - International expansion is progressing steadily, with a new flagship store at Singapore Changi Airport already opened, and plans to further establish a presence in Southeast Asia, Oceania, Canada, and the Middle East, aiming to add six new stores in international markets by June 2026 [1] Strategic Outlook - The group will continue to dynamically optimize its operational strategies to adapt to the complex and changing market landscape, reinforcing its leading position in the industry [2] - The company will maintain rigorous financial discipline through prudent cost control and capital allocation to support sustainable quality profits and create long-term stable shareholder value [2]