Shares of Chow Tai Fook Jewellery surged 17.4% to close at HK$13.05 after the company released annual results that signalled a return to profit growth. The company reported profit attributable for the year ended March 31 of HK$9.004 billion, a 52.2% increase year-on-year, while revenue rose 5.3% to HK$94.398 billion.
Management cited the effect of elevated gold prices as a key factor lifting overall margins. That margin tailwind, together with the scale of the profit rebound, formed the core earnings story investors responded to when markets opened.
Alongside the annual figures, the group issued a trading update covering the first two months of the new financial year - April 1 to May 31, 2026. Retail value for that period increased 14.7% year-on-year. The update highlighted particularly strong performance in Hong Kong, Macau and other markets, which recorded a 44.1% gain over the same period, while mainland China delivered 10.3% growth.
The result and update were amplified by a meaningful dividend uplift and the reaffirmation of a Buy recommendation from a major Wall Street bank. Those multiple, concurrent positive datapoints provided a layered catalyst that helped drive the stock to the upper end of its intraday range of HK$11.80 to HK$13.18, narrowing the gap to its 52-week high of HK$16.95.
Investors reacted to the combination of a blowout profit result, better early-period retail trends, and supportive analyst sentiment. The company’s disclosure of a higher dividend added to total shareholder return considerations, while the trading update offered an initial read on momentum at the start of the new fiscal year.
Market moves reflected concentrated interest in regions showing outsized retail gains, with Hong Kong, Macau and other markets standing out for the size of their increase. Mainland China’s positive, though more moderate, expansion contributed to the overall improvement in retail value for the period.
Overall, the stock’s single-session advance was driven by the convergence of strong reported earnings, early sales momentum, a larger dividend, and external validation from a prominent bank’s Buy call. The magnitude of the price move was consistent with the multiple favorable developments disclosed in quick succession.
Bottom line - Chow Tai Fook delivered a substantial profit recovery and early-year retail growth, which together, along with a dividend increase and analyst support, sparked a notable intraday rally.