Chow Tai Fook Jewellery Group (1929) AI Stock Analysis

• Market Cap: $125.29B
• Dividend Yield: 4.25%
• Average Volume (3M): 13.93M
• Price to Earnings (P/E): 21.6
• Beta (1Y): 0.99
• Revenue Growth: -9.49%
• EPS Growth: 32.56%
• Country: HK
• Employees: 26,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 0.26
• Shares Outstanding: 9,865,367,000
• 10 Day Avg. Volume: 18,038,485
• 30 Day Avg. Volume: 13,927,995
• PEG Ratio: -1.61
• Price to Book (P/B): 3.33
• Price to Sales (P/S): 0.98
• P/FCF Ratio: 9.09
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $18.82
• Price Target Upside: 46.69% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: HK$16.00 ▲(24.71% Upside)

Chow Tai Fook Jewellery Group's overall stock score is driven by strong financial performance, particularly in cash flow generation and operational efficiency. However, recent revenue declines and increased leverage present potential risks. Technical indicators suggest a bearish short-term trend, and the stock's high P/E ratio indicates it may be overvalued, though the dividend yield offers some compensation.

Positive Factors

Cash Flow Generation

Strong cash flow generation indicates efficient operations and financial health, providing the company with flexibility to invest in growth opportunities and manage debt.

Operational Efficiency

Improved gross profit margins reflect effective cost management, enhancing the company's ability to sustain profitability even in challenging market conditions.

Return on Equity

The increase in return on equity suggests better utilization of shareholder funds, indicating strong management performance and potential for shareholder value creation.

Negative Factors

Revenue Decline

The recent decline in revenue could signal challenges in market demand or competitive pressures, potentially impacting long-term growth prospects if not addressed.

Increased Leverage

Increased leverage may pose financial risks, limiting the company's ability to respond to market changes and invest in growth without incurring additional debt.

Equity Ratio Decline

A declining equity ratio indicates growing reliance on liabilities, which could reduce financial stability and flexibility in the face of economic downturns.

Chow Tai Fook Jewellery Group Business Overview & Revenue Model

Company Description

Chow Tai Fook Jewellery Group Limited, founded in 1929, is one of the largest and most prominent jewelry retailers in Hong Kong and mainland China. The company operates in the luxury goods sector, specializing in the design, manufacture, and retail of a wide range of jewelry products, including gold, platinum, diamond, and jade items. Chow Tai Fook is renowned for its high-quality craftsmanship and innovative designs, catering to both traditional and contemporary tastes.

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 2025	Dec 2024	Dec 2022	Dec 2021	Dec 2021
Income Statement
Total Revenue	89.23B	89.66B	108.71B	94.68B	70.16B	98.94B
Gross Profit	25.98B	26.45B	22.29B	22.73B	20.26B	23.30B
EBITDA	10.44B	10.61B	11.71B	10.23B	10.87B	11.33B
Net Income	5.92B	5.92B	6.50B	5.38B	6.03B	6.71B
Balance Sheet
Total Assets	87.15B	76.52B	88.82B	87.34B	64.31B	87.74B
Cash, Cash Equivalents and Short-Term Investments	10.35B	7.58B	7.70B	11.73B	6.03B	14.94B
Total Debt	35.74B	20.79B	29.89B	22.11B	13.64B	25.98B
Total Liabilities	61.82B	49.13B	62.07B	53.98B	32.74B	53.18B
Stockholders Equity	24.39B	26.43B	25.71B	32.40B	30.77B	33.62B
Cash Flow
Free Cash Flow	5.31B	9.68B	12.87B	7.72B	9.39B	12.19B
Operating Cash Flow	5.80B	10.25B	13.84B	9.70B	10.23B	13.72B
Investing Cash Flow	-514.70M	-401.90M	-716.60M	-1.95B	-779.90M	-1.51B
Financing Cash Flow	1.26B	-9.88B	-16.83B	-10.17B	-10.85B	-3.52B

Chow Tai Fook Jewellery Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 12.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Neutral. The current price of 12.83 is below the 20-day moving average (MA) of 13.22, below the 50-day MA of 14.19, and above the 200-day MA of 12.58, indicating a neutral trend. The MACD of -0.50 indicates Positive momentum. The RSI at 39.10 is Neutral, neither overbought nor oversold. The STOCH value of 29.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$14.61B	11.35	9.54%	4.43%	10.89%	2.02%
0887	69 Neutral	HK$1.81B	6.55	5.10%	4.05%	6.60%	-14.32%
1929	64 Neutral	$125.29B	21.58	23.74%	4.25%	-9.49%	32.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0116	61 Neutral	HK$8.33B	7.27	9.13%	4.60%	-10.41%	67.25%
1815	57 Neutral	HK$2.93B	44.32	3.54%	―	-23.48%	―
0256	48 Neutral	HK$1.00B	-3.30	-7.92%	―	-18.07%	-1041.89%

Chow Tai Fook Jewellery Group Corporate Events

Chow Tai Fook Adjusts Convertible Bond Conversion Price Following Dividend Declaration

Chow Tai Fook Jewellery Group Limited announced an adjustment to the conversion price of its HK$8.8 billion convertible bonds due in 2030, following the declaration of an interim dividend of HK$0.22 per share for the six months ended September 30, 2025. This adjustment will decrease the conversion price from HK$16.91 to HK$16.66 per share, effective December 18, 2025, resulting in an increase of 7,809,156 shares upon full conversion of the bonds, which represents approximately 5.35% of the company’s existing issued share capital.

Chow Tai Fook Releases 2025/2026 Interim Results

Chow Tai Fook Jewellery Group Limited has released its interim results for the six months ending September 30, 2025. The announcement provides insights into the company’s financial performance and strategic direction, which are crucial for stakeholders and investors to understand its market positioning and future prospects.

Chow Tai Fook Announces Interim Dividend for 2025

Chow Tai Fook Jewellery Group Limited has announced an interim cash dividend of HKD 0.22 per share for the six months ending September 30, 2025. This dividend reflects the company’s financial performance and commitment to providing returns to its shareholders. The ex-dividend date is set for December 15, 2025, with the payment date scheduled for December 24, 2025. This announcement is likely to have a positive impact on shareholder sentiment and reinforces the company’s stable financial positioning in the jewelry market.

Chow Tai Fook Announces Interim Results and Operational Data for 2025

Chow Tai Fook Jewellery Group Limited announced its unaudited interim results for the six months ending on 30 September 2025. The announcement complies with the listing rules of the Hong Kong Stock Exchange and includes key operational data up to 18 November 2025, reflecting the company’s ongoing transparency and commitment to stakeholders.

Chow Tai Fook to Review Interim Results and Dividend Declaration

Chow Tai Fook Jewellery Group Limited announced that its board of directors will meet on November 25, 2025, to review and approve the interim financial results for the six months ending September 30, 2025. The meeting will also consider the declaration of an interim dividend, which could impact shareholder returns and reflect the company’s financial health.

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.