Chow Tai Fook Jewellery Group (1929) AI Stock Analysis

• Market Cap: $133.97B
• Dividend Yield: 3.78%
• Average Volume (3M): 13.93M
• Price to Earnings (P/E): 22.9
• Beta (1Y): 1.03
• Revenue Growth: -17.53%
• EPS Growth: -8.90%
• Country: HK
• Employees: 26,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.34
• Shares Outstanding: 9,865,367,000
• 10 Day Avg. Volume: 18,038,485
• 30 Day Avg. Volume: 13,927,995
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 3.86
• Enterprise Value/Ebitda: 7.95
• 1Y Price Target: $18.81
• Price Target Upside: 36.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: HK$14.50 ▲(5.30% Upside)

Chow Tai Fook Jewellery Group's overall score is primarily influenced by its strong financial performance and cash flow generation, which are offset by recent revenue declines and increased leverage. The technical analysis indicates bearish momentum, which could pose short-term risks. Valuation metrics suggest the stock is relatively expensive, though the dividend yield offers some compensation.

Chow Tai Fook Jewellery Group Business Overview & Revenue Model

Company Description

Chow Tai Fook Jewellery Group Limited, an investment holding company, manufactures and sells jewelry products. The company offers gem-set, platinum and k-gold jewelry, and k-gold jewelry and products under the CHOW TAI FOOK, HEARTS ON FIRE, T MARK, ENZO, MONOLOGUE, and SOINLOVE brands. It also distributes watches of various brands. In addition, the company is involved in the trading of diamonds; and the provision of services to franchisees. The company also sells its products through online platforms. As of March 31, 2022, it had 5,902 points of sale in Mainland China, Hong Kong, Macau, Taiwan, Cambodia, Korea, Japan, Malaysia, the Philippines, Singapore, Thailand, the United States, and Vietnam. The company was founded in 1929 and is headquartered in Central, Hong Kong. Chow Tai Fook Jewellery Group Limited is a subsidiary of Chow Tai Fook Capital Limited.

How the Company Makes Money

Chow Tai Fook generates revenue primarily through the sale of its jewelry products in a vast network of retail stores across Hong Kong, Macau, and mainland China. The company's revenue model is anchored in direct retail sales, which account for the majority of its earnings. Additionally, Chow Tai Fook engages in wholesale operations, providing jewelry products to other retailers. Key revenue streams include gold and diamond sales, with gold jewelry being a significant driver due to its cultural significance in Chinese society. The company also benefits from strategic partnerships with local and international suppliers, enhancing its product offerings and expanding its market reach. Seasonal promotions, wedding-related sales, and the growing trend of luxury consumption in China further contribute to its earnings.

Chow Tai Fook Jewellery Group Financial Statement Overview

Summary

Chow Tai Fook Jewellery Group shows robust operational efficiency and cash flow generation, which are critical strengths. However, the decline in revenue in recent years and increased leverage may pose risks if not managed well. The balance sheet reveals a need for cautious financial management going forward to ensure continued financial health in the face of potential market fluctuations.

Income Statement

Chow Tai Fook Jewellery Group has demonstrated strong revenue performance over the years, with a notable growth from 2020 to 2022. However, there was a decline in revenue in 2024 and 2025. The gross profit margin improved from 28.3% in 2020 to 29.5% in 2025, showcasing better cost management. Net profit margins showed some volatility but remained positive, ending at 6.6% in 2025. EBIT and EBITDA margins have been consistent, indicating robust operational efficiency.

Balance Sheet

The company's debt-to-equity ratio increased from 0.93 in 2020 to 0.79 in 2025, reflecting a more leveraged position, which could be a concern if revenue continues to decline. Return on equity decreased from 11% in 2020 to 22.4% in 2025, indicating better utilization of equity over time. The equity ratio decreased from 40.4% in 2020 to 34.5% in 2025, suggesting more reliance on liabilities.

Cash Flow

Chow Tai Fook's cash flow position is strong with consistent free cash flow generation. The free cash flow to net income ratio improved significantly, highlighting efficient cash generation relative to profits. Operating cash flow to net income ratio also increased, indicating strong cash earnings. Despite a decrease in operating cash flows from 2024 to 2025, capital expenditure management remained effective.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	89.66B	89.66B	108.71B	94.68B	98.94B	70.16B
Gross Profit	26.45B	26.45B	22.29B	22.73B	23.30B	20.26B
EBITDA	12.86B	10.61B	11.71B	10.23B	11.33B	10.87B
Net Income	5.92B	5.92B	6.50B	5.38B	6.71B	6.03B
Balance Sheet
Total Assets	76.52B	76.52B	88.82B	87.34B	87.74B	64.31B
Cash, Cash Equivalents and Short-Term Investments	7.58B	7.58B	7.70B	11.73B	14.94B	6.03B
Total Debt	20.79B	20.79B	29.89B	22.11B	25.98B	13.64B
Total Liabilities	49.13B	49.13B	62.07B	53.98B	53.18B	32.74B
Stockholders Equity	26.43B	26.43B	25.71B	32.40B	33.62B	30.77B
Cash Flow
Free Cash Flow	9.42B	9.68B	12.87B	7.72B	12.19B	9.39B
Operating Cash Flow	10.00B	10.25B	13.84B	9.70B	13.72B	10.23B
Investing Cash Flow	-418.00M	-401.90M	-716.60M	-1.95B	-1.51B	-779.90M
Financing Cash Flow	-9.29B	-9.88B	-16.83B	-10.17B	-3.52B	-10.85B

Chow Tai Fook Jewellery Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 13.77
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1929, the sentiment is Negative. The current price of 13.77 is below the 20-day moving average (MA) of 15.28, below the 50-day MA of 15.41, and above the 200-day MA of 11.67, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 34.78 is Neutral, neither overbought nor oversold. The STOCH value of 11.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
0590	77 Outperform	$13.50B	12.28	8.44%	4.67%	-12.95%	-37.76%
0116	75 Outperform	HK$8.56B	7.26	9.13%	4.45%	-10.41%	67.25%
0887	72 Outperform	HK$2.00B	7.29	5.10%	3.64%	6.82%	42.74%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
1929	59 Neutral	$133.97B	22.93	22.73%	3.78%	-17.53%	-8.90%
1815	58 Neutral	HK$2.33B	34.43	3.54%	―	-23.48%	―
0256	43 Neutral	$835.56M	-2.61	-7.92%	―	-18.07%	-1041.89%

Chow Tai Fook Jewellery Group Corporate Events

Chow Tai Fook Jewellery Sees Positive Turnaround in Q2 2025

Chow Tai Fook Jewellery Group reported a positive shift in its business performance for the second quarter ending September 2025, with a 4.1% growth in retail sales value. The company saw a rebound in same store sales growth across Mainland China and Hong Kong and Macau, driven by strong sales in fixed-price products and gold jewelry. The average selling price of gold jewelry rose significantly in both regions, and the company’s signature collections continued to perform well. The brand’s transformation efforts, including the launch of new collections and the opening of new image stores, have been well-received, contributing to enhanced store productivity and market reception.

The most recent analyst rating on (HK:1929) stock is a Hold with a HK$16.50 price target. To see the full list of analyst forecasts on Chow Tai Fook Jewellery Group stock, see the HK:1929 Stock Forecast page.

Chow Tai Fook Grants Share Awards to Key Management

Chow Tai Fook Jewellery Group Limited announced the grant of 2,669,400 awards to certain directors and senior management as part of its Share Award Scheme. These awards, representing approximately 0.03% of the total issued shares, are subject to performance targets and will vest on July 1, 2028. The initiative aims to align the interests of key personnel with the company’s strategic objectives and financial performance, potentially enhancing stakeholder value.

The most recent analyst rating on (HK:1929) stock is a Buy with a HK$15.80 price target. To see the full list of analyst forecasts on Chow Tai Fook Jewellery Group stock, see the HK:1929 Stock Forecast page.

Chow Tai Fook Announces New Board Composition for 2025

Chow Tai Fook Jewellery Group has announced the composition of its board of directors and their roles, effective from September 1, 2025. This update includes both executive and independent non-executive directors, highlighting the company’s commitment to strong governance and strategic oversight, which could impact its operational efficiency and stakeholder confidence.

The most recent analyst rating on (HK:1929) stock is a Buy with a HK$15.80 price target. To see the full list of analyst forecasts on Chow Tai Fook Jewellery Group stock, see the HK:1929 Stock Forecast page.

Chow Tai Fook Appoints Former Starbucks China CEO as Independent Director

Chow Tai Fook Jewellery Group Limited has announced the appointment of Ms. Wong Ching-Ying, Belinda as an independent non-executive director, effective from September 1, 2025. Ms. Wong brings a wealth of experience from her previous role as Chairwoman and CEO of Starbucks China, where she significantly expanded the company’s presence. Her expertise in retail, brand development, and growth strategy is expected to enhance the company’s board diversity and contribute to its strategic direction.

The most recent analyst rating on (HK:1929) stock is a Buy with a HK$9.00 price target. To see the full list of analyst forecasts on Chow Tai Fook Jewellery Group stock, see the HK:1929 Stock Forecast page.