Chow Tai Fook Sees First-Half Profit Rising on Strong Sales
Chow Tai Fook Jewellery Group Ltd. (1929), the world’s largest listed jewelry chain, said first-half profit probably gained on strong sales of gold products and reduced hedging loss from gold loans.
The company is preparing interim earnings for the six month through September, so the positive profit alert is based on a preliminary review of management accounts, the Hong Kong-based company said in a filing to the city’s stock exchange yesterday.
Retail sales of gold in China surged in April as global bullion prices plunged, aiding jewelers across the country. Chow Tai Fook reported a profit of HK$1.82 billion ($235 million) in the six months ended Sept. 30 last year, according to data compiled by Bloomberg.
The stock rose as much as 2.9 percent to HK$12.6 before trading at HK$12.46 at 11:03 a.m. in Hong Kong trading. The benchmark Hang Seng Index gained O.7 percent.
Chow Tai Fook said on Oct. 17 that same-store sales rose 18 percent in the second quarter and margins widened. The company will release first-half earnings at the end of November.
Bullion for immediate delivery traded at $1,343.58 an ounce at 8:58 a.m. in Singapore from $1,345.05 yesterday. Gold rebounded this month on speculation the U.S. Federal Reserve won’t slow asset purchases until next year after a government shutdown hurt the economy.
To contact the editor responsible for this story: Stephanie Wong at firstname.lastname@example.org