Pursuits
Chow Tai Fook Hits Record Low After Warning Profit to Plunge
- Jeweler says six months to Sept net profit may drop 40% to 50%
- Profit slump due to weak sentiments in Hong Kong, Macau
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Chow Tai Fook Jewellery Group Ltd. shares fell to a record low in Hong Kong after it warned that first-half profit will plunge by as much as 50 percent due to weak consumer sentiment in Hong Kong and Macau amid a slowdown in China’s economy.
The world’s largest publicly traded jewelry chain forecast its net income for the six months ending Sept. 30 to decrease by about 40 to 50 percent compared with a year earlier, mainly due to weakness in the two cities, increased sales of lower-margin gold products and unrealized hedging losses, according to a statement late on Tuesday.