Chow Sang Sang Holdings International Ltd. shares surged on Thursday after the Hong Kong-based jewelry retailer reported first-half profit that exceeded market expectations and raised its full-year guidance.
The company said net profit attributable to shareholders rose 37.5% to HK$189.6 million ($24.2 million) in the six months ended June 30, compared with HK$138 million a year earlier. Revenue increased 17.8% to HK$2.3 billion, driven by higher sales in its core Greater China markets and a rebound in Mainland China tourism.
Chow Sang Sang also upgraded its full-year net profit forecast to at least HK$350 million, up from a previous estimate of HK$300 million. The company cited strong demand for gold and diamond jewelry, as well as improved foot traffic in its stores, particularly in Hong Kong and Macau.
Analysts attributed the better-than-expected performance to a combination of rising gold prices, which boosted product margins, and a recovery in consumer spending post-pandemic. The stock, which had been trading near multi-year lows earlier in the year, has gained more than 25% since mid-June.
Chow Sang Sang operates a network of over 500 retail outlets across Greater China, with a focus on mid-to-high-end jewelry. The company has also expanded its e-commerce presence, which contributed about 15% to total revenue in the first half of the year.
"The strong results reflect the resilience of our brand and the effectiveness of our strategy to capture pent-up demand," said Chow Sang Sang Chairman and CEO Lau Ming-fai in a statement.
The stock closed 7.8% higher at HK$2.15 on Thursday, outpacing the broader Hang Seng Index, which ended the session down 0.3%.
