Analysis of Chow Tai Fook (01929.HK) H1 FY2026 Financial Report Performance

1. Business Recovery and Profit Performance
   : Chow Tai Fook showed a strong recovery trend in H1 FY2026, with same-store sales in both Mainland China and Hong Kong/Macau regions achieving positive growth, and operating profit margin reaching a five-year historical high of 17.5% [0]. This indicates that against the backdrop of consumer market recovery, the company has achieved significant improvement in profitability through product structure optimization and operational efficiency enhancement.
2. Financial Returns and Shareholder Value
   : The company raised its dividend from HK$0.20 per share to HK$0.22 per share, with a dividend payout ratio of 85.7% [0], reflecting management’s confidence in future cash flow and emphasis on shareholder returns.
3. Brand Transformation and International Layout
   : Brand transformation initiatives have yielded notable results, with new image stores performing well; meanwhile, the company has formulated an international expansion plan targeting Southeast Asia, Oceania, Canada, and the Middle East [0], opening up new markets for long-term growth.

• The overall recovery of same-store sales demonstrates Chow Tai Fook’s brand competitiveness and operational resilience in the jewelry consumer market
• High dividend payout ratio combined with profit growth may have a positive impact on investor attractiveness
• If the international expansion strategy is successfully implemented, it will help the company reduce reliance on a single market and diversify operational risks

• Opportunities
  : Growth in jewelry market demand amid consumer recovery; growth potential from brand transformation and new market expansion
• Risks
  : Cultural differences, competitive landscape, and operational challenges faced in international expansion; impact of macroeconomic fluctuations on luxury consumption

Chow Tai Fook delivered a strong performance in H1 FY2026, achieving profit growth, dividend increase, and advancement of strategic planning. The company’s initiatives in brand operation and market expansion have laid the foundation for future development, but uncertainties brought by international expansion and macro environment need to be monitored.