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Hong Kong jeweller Chow Tai Fook hit an 8-week high on Wednesday after the company announced net profit jumped 46 per cent in the six months to September.
Net profit for the six months to September rose to HK$1.7bn ($227.7m) from HK$1.2bn in the same period last year, in line with estimates compiled by Reuters. Revenue rose 15 per cent year on year to HK$24.7bn.
The company said it plans to open more shops in mainland China in 2018 to capitalise on the “nascent jewellery market recovery”, which is expects to return to “stable yet sustainable growth”. It opened 112 shops in China during the six months to September.
The mainland Chinese jewellery market has been under pressure in recent years amid a corruption crackdown that dented demand.
But improved sentiment saw same-store sales in mainland China rise 10.3 per cent for the six-months through September while that for Hong Kong and Macau was up 9.5 per cent.
Chow Tai Fook said growth in the Hong Kong and Macau markets was driven by gold products, with volume up 9.7 per cent.
Chow Tai Fook shares were up 4.4 per cent going into the lunch break in Hong Kong.