Chow Tai Fook Advances on 26% Quarterly Sales GrowthVinicy Chan
Chow Tai Fook Jewellery Group Ltd., the world’s largest jewelry chain, surged the most in six months in Hong Kong trading after reporting a 26 percent jump in quarterly sales.
The shares rose 10 percent, the most since July 10, to close at HK$12.92. The Hang Seng Index climbed 1.3 percent.
“Chow Tai Fook delivered impressive revenue growth of 26 percent in the third quarter thanks to newly opened stores, higher volume growth and more sales of gem sets,” Candy Huang, a Hong Kong-based analyst at Barclays Plc wrote in a research note today. Huang rates the stock the equivalent of a buy.
The jewelry chain plans to open 200 points of sale in the fiscal year that starts in April, Managing Director Kent Wong said on a conference call yesterday.
Chow Tai Fook yesterday also reported growth in same-store sales, or sales for stores opened more than a year, slowed to 11 percent in the three months ended December, compared with 33 percent in first half, as gold prices dropped.
Gold products accounted for 57 percent of the company’s total sales in the third quarter, the company said.