HK Stock Market Move | CHOW TAI FOOK (01929) dropped more than 3% after performance, with a slight increase in net profit compared to the same period last year in the first half of the fiscal year. Gross profit margin decreased by 0.9 percentage points.

CHOW TAI FOOK (01929) fell more than 3% after the performance report, falling by 3.61% to 14.69 Hong Kong dollars as of press time, with a trading volume of 72.3404 million Hong Kong dollars. On the news front, CHOW TAI FOOK released its interim performance for the six months ending September 30, 2025. The company achieved revenue of 38.986 billion Hong Kong dollars, a decrease of 1.07% year-on-year; the company's attributable profit to shareholders reached 2.534 billion Hong Kong dollars, an increase of 0.16% year-on-year; the gross profit margin narrowed by 0.9 percentage points to 30.5% year-on-year. CHOW TAI FOOK explained that the decrease in retail product gross profit margin was due to the limited increase in gold prices that had been realized. However, an increase in the proportion of priced jewelry and retail business offset some of the impact. CICC commented that the company's revenue in 1HFY26 decreased by 1.1% to 39 billion Hong Kong dollars, with net profit attributable to shareholders remaining flat at 2.5 billion Hong Kong dollars year-on-year, slightly below the bank's expectations, mainly due to the impact of gross profit margin. The company declared an interim dividend of 0.22 Hong Kong dollars per share, corresponding to a dividend payout ratio of 86%. The company's revenue in 1HFY26 decreased by 1.1%, with a significant narrowing of the decline compared to the previous period. In terms of region, revenue in mainland China decreased by 2.5% to 32.2 billion Hong Kong dollars, as the company continued to optimize its store network to improve retail performance and profitability. The Hong Kong, Macau, and overseas markets benefited from an improvement in the retail environment and a recovery in customer traffic, with revenue increasing by 6.5% to 6.8 billion Hong Kong dollars, with same-store sales in Hong Kong and Macau increasing by 4.4% during the period.