Chow Tai Fook Jewellery Group (1929) AI Stock Analysis

• Market Cap: $110.66B
• Dividend Yield: 4.52%
• Average Volume (3M): 17.89M
• Price to Earnings (P/E): 24.7
• Beta (1Y): 1.09
• Revenue Growth: 0.94%
• EPS Growth: -32.06%
• Country: HK
• Employees: 26,500
• Sector: Consumer Cyclical
• Sector Strength: 75
• Industry: Luxury Goods
• EPS (TTM): 0.25
• Shares Outstanding: 9,987,736,000
• 10 Day Avg. Volume: 17,186,304
• 30 Day Avg. Volume: 17,888,800
• PEG Ratio: -0.75
• Price to Book (P/B): 4.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.44
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $12.31
• Price Target Upside: 12.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 80 Outperform
• Price Target: ―

Chow Tai Fook Jewellery Group's overall stock score reflects its strong financial performance, marked by robust revenue growth and cash flow management. The technical indicators show a positive market trend, further boosting confidence in future stock performance. While its valuation is reasonable, the high dividend yield serves as a notable incentive for investors.

Chow Tai Fook Jewellery Group Business Overview & Revenue Model

Company Description

Chow Tai Fook Jewellery Group Limited, established in 1929, is a leading jewelry retailer headquartered in Hong Kong. The company operates in the luxury goods sector, focusing primarily on the production and retail of high-quality jewelry and watches. With an extensive retail network across Greater China, Southeast Asia, Japan, and the United States, Chow Tai Fook is recognized for its craftsmanship, high-quality materials, and innovative designs. Its core products include gold jewelry, gem-set jewelry, and platinum and karat gold products.

How the Company Makes Money

Chow Tai Fook Jewellery Group makes money primarily through the sale of its jewelry and watch products. The company's revenue model is centered around its expansive retail network, which consists of directly operated stores and franchise outlets. A significant portion of its earnings comes from gold jewelry sales, which are popular in its key markets. Additionally, Chow Tai Fook generates revenue through its luxury watch segment, offering products from both its proprietary brands and third-party luxury brands. The company benefits from its strong brand reputation, strategic store locations, and ongoing expansion into emerging markets. Moreover, Chow Tai Fook engages in e-commerce, catering to the growing trend of online shopping, which further supplements its revenue streams.

Chow Tai Fook Jewellery Group Financial Statement Overview

Summary

Chow Tai Fook Jewellery Group exhibits strong financial health characterized by solid revenue growth, stable profitability margins, and efficient cash flow management. While the balance sheet reflects moderate leverage, the company's ability to generate cash flow effectively mitigates potential risks. The financial trajectory indicates a well-managed firm poised for sustainable growth in the luxury goods market.

Income Statement

Chow Tai Fook Jewellery Group demonstrates strong profitability with a consistent gross profit margin of approximately 20.5% and an improving net profit margin, rising from 5.5% in 2020 to 6% in 2024. Revenue growth rate from 2023 to 2024 was robust at 14.8%, indicating positive market demand. EBIT and EBITDA margins remain stable, showcasing operational efficiency.

Balance Sheet

The company's balance sheet reflects a solid equity base with a debt-to-equity ratio of 1.16 in 2024, which suggests moderate leverage. The return on equity has improved from 11% in 2020 to 25.3% in 2024, indicating efficient use of equity. The equity ratio stands at 28.9%, highlighting a well-balanced asset structure.

Cash Flow

Chow Tai Fook has shown strong cash flow management with a significant increase in free cash flow by 66.8% from 2023 to 2024. The operating cash flow to net income ratio of 2.1 in 2024 demonstrates excellent cash generation ability relative to net income, while the free cash flow to net income ratio of 2 highlights the company's ability to generate surplus cash after capital expenditures.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
98.59B	108.71B	94.68B	98.94B	70.16B	56.75B
	Gross Profit
22.32B	22.29B	22.73B	23.30B	20.26B	16.03B
	EBIT
9.19B	9.09B	8.98B	9.36B	8.35B	5.78B
	EBITDA
10.46B	11.71B	10.23B	11.33B	10.87B	7.12B
	Net Income Common Stockholders
4.48B	6.50B	5.38B	6.71B	6.03B	2.90B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.62B	7.70B	11.73B	14.94B	6.03B	7.22B
	Total Assets
49.40B	88.82B	87.34B	87.74B	64.31B	65.24B
	Total Debt
10.01B	29.89B	22.11B	25.98B	13.64B	24.51B
	Net Debt
2.06B	22.20B	10.41B	11.04B	7.61B	17.29B
	Total Liabilities
16.90B	62.07B	53.98B	53.18B	32.74B	38.19B
	Stockholders Equity
31.80B	25.71B	32.40B	33.62B	30.77B	26.34B
Cash Flow		Free Cash Flow
6.23B	12.87B	7.72B	12.19B	9.39B	6.92B
	Operating Cash Flow
7.03B	13.84B	9.70B	13.72B	10.23B	7.90B
	Investing Cash Flow
-824.20M	-716.60M	-1.95B	-1.51B	-779.90M	-1.11B
	Financing Cash Flow
-8.58B	-16.83B	-10.17B	-3.52B	-10.85B	-7.10B

Chow Tai Fook Jewellery Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1929, the sentiment is Positive. The current price of 10.96 is above the 20-day moving average (MA) of 10.53, above the 50-day MA of 9.68, and above the 200-day MA of 7.64, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 58.15 is Neutral, neither overbought nor oversold. The STOCH value of 69.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1929.

Chow Tai Fook Jewellery Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0883	83 Outperform	HK$874.84B	5.66	19.25%	7.87%	5.62%	-0.74%
1929	80 Outperform	$110.66B	24.71	17.34%	4.52%	0.94%	-32.06%
0700	78 Outperform	$4.69T	22.09	21.25%	0.66%	8.88%	54.27%
0011	76 Outperform	$205.17B	11.69	11.23%	6.41%	-2.77%	4.04%
1299	74 Outperform	$691.59B	13.45	16.75%	2.44%	7.04%	88.41%
1109	66 Neutral	$180.41B	6.51	9.66%	6.59%	9.97%	-19.80%
Sector *	62 Neutral	$6.84B	11.23	3.09%	3.95%	2.66%	-25.23%

Chow Tai Fook Jewellery Group Corporate Events

Chow Tai Fook Reports Q4 Sales Decline Amid Economic Challenges

Chow Tai Fook Jewellery Group reported a decline in retail sales value and same store sales for the fourth quarter ending March 2025, attributed to macroeconomic challenges and high gold prices affecting consumer sentiment. Despite these challenges, the company saw a narrowing decline in same store sales in Mainland China due to successful product optimization and effective marketing campaigns. In Hong Kong and Macau, sales were impacted by changes in spending patterns of Mainland tourists. The company also made progress in brand transformation with new image stores and strong sales from its iconic collections, exceeding annual sales targets.

Chow Tai Fook Announces Management Re-Alignment to Strengthen Financial Leadership

Chow Tai Fook Jewellery Group Limited announced a re-alignment of management roles, with Mr. Cheng Ping-Hei, Hamilton transitioning from his role as Chief Financial Officer to focus on strategic oversight in capital management, investor relations, and company secretary responsibilities. This change, effective from April 1, 2025, aims to enhance the Group’s financial leadership and operational efficiencies, as a new CFO will join to drive financial management and long-term growth strategies.