Smartkarma's AI Co-Pilot, Smartkarma

αSK

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Research Reinvented

Equity Bottom-Up

<ul>
  <li>
<a href="https://smartkarma.com/entities/chow-sang-sang-holdings-international-limited">Chow Sang Sang</a> is a well-established jeweler in Greater China with a strong brand heritage since 1934, demonstrating resilience and profitability with a significant 115% increase in net profit in its 2025 fiscal year.</li>
  <li>The company is strategically navigating a competitive market by optimizing its retail network, enhancing its omnichannel presence, and focusing on higher-margin, fixed-price gold products to capitalize on strong demand.</li>
  <li>Valuation appears attractive relative to peers, with a lower P/E and P/B ratio. However, risks include high dependency on the cyclical Greater China consumer market, intense competition, and volatility in precious metal prices.</li>
</ul><p><em>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.</em></p>


  
Chow Sang Sang is a well-established jeweler in Greater China with a strong brand heritage since 1934, demonstrating resilience and profitability with a significant 115% increase in net profit in its 2025 fiscal year.
  The company is strategically navigating a competitive market by optimizing its retail network, enhancing its omnichannel presence, and focusing on higher-margin, fixed-price gold products to capitalize on strong demand.
  Valuation appears attractive relative to peers, with a lower P/E and P/B ratio. However, risks include high dependency on the cyclical Greater China consumer market, intense competition, and volatility in precious metal prices.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: Chow Sang Sang (116 HK) - May 2026

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>There is an increasing likelihood that the duty-free quota of mainland tourists visiting Hong Kong will rise to Rmb30,000 from Rmb5,000. This will benefit many retail-related sectors.</li>
<li>
<a href="https://www.smartkarma.com/entities/luk-fook-holdings-intl-ltd" target="_blank" data-smartkarma-citation="entities:19054:1" rel="noopener">Luk Fook Holdings (590 HK)</a> is the best play among jewellery retailers given it has 65% of revenue from Hong Kong. <a href="https://www.smartkarma.com/entities/sa-sa-international-hldgs" target="_blank" data-smartkarma-citation="entities:20143:1" rel="noopener">Sa Sa International (178 HK)</a> is the cosmetics play.</li>
<li>Property investors including <a href="https://www.smartkarma.com/entities/wharf-holdings-ltd" target="_blank" data-smartkarma-citation="entities:51:1" rel="noopener">Wharf Holdings (4 HK)</a> and <a href="https://www.smartkarma.com/entities/hysan-development-co" target="_blank" data-smartkarma-citation="entities:14169:1" rel="noopener">Hysan Development Co (14 HK)</a> will gain from the shopping malls in major tourist areas in Hong Kong.</li>
</ul>


There is an increasing likelihood that the duty-free quota of mainland tourists visiting Hong Kong will rise to Rmb30,000 from Rmb5,000. This will benefit many retail-related sectors.

Luk Fook Holdings (590 HK) is the best play among jewellery retailers given it has 65% of revenue from Hong Kong. Sa Sa International (178 HK) is the cosmetics play.
Property investors including Wharf Holdings (4 HK) and Hysan Development Co (14 HK) will gain from the shopping malls in major tourist areas in Hong Kong.


Increasing HK Duty Free Quota: The Beneficaries

Chow Tai Fook Jewellery / Equity Bottom-Up

<ul>
<li>The market's assumption of no special dividends in <a href="https://www.smartkarma.com/entities/chow-tai-fook-jewellery-group" target="_blank" data-smartkarma-citation="entities:549:1" rel="noopener">Chow Tai Fook Jewellery (1929 HK)</a>'s upcoming FY24 result is conservative, and this does not fit into its usual pattern. </li>
<li>Should it pay special DPS, the dividend yield may reach an attractive 10.7%. With its net cash position, CTF can financially maintain the average 135.6% payout ratio. </li>
<li>A return to its historical average dividend yield of 7.4% means that CTF's share price will need to go up by 45% from the current level.</li>
</ul>


The market's assumption of no special dividends in Chow Tai Fook Jewellery (1929 HK)'s upcoming FY24 result is conservative, and this does not fit into its usual pattern. 
Should it pay special DPS, the dividend yield may reach an attractive 10.7%. With its net cash position, CTF can financially maintain the average 135.6% payout ratio. 
A return to its historical average dividend yield of 7.4% means that CTF's share price will need to go up by 45% from the current level.


Chow Tai Fook (1929 HK): What if Special Dividends Are Declared?

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

<ul>
<li>Chinese Real Estate prices have been the major driver of the Chinese stock market slump, but the fall seemed to stop. </li>
<li>Recently sworn-in President Trump is no longer considered an enemy of China, and his tariff punishment will no longer be across the board but more selective. </li>
<li>A few stocks in Hong Kong listing that trade at lower PE multiples to the dividend yield, indicating the undemanding valuation to obtain yield. </li>
</ul>


Chinese Real Estate prices have been the major driver of the Chinese stock market slump, but the fall seemed to stop. 
Recently sworn-in President Trump is no longer considered an enemy of China, and his tariff punishment will no longer be across the board but more selective. 
A few stocks in Hong Kong listing that trade at lower PE multiples to the dividend yield, indicating the undemanding valuation to obtain yield. 


<ul>
<li>The 4Q FY26 operating statistics suggest that <a href="https://www.smartkarma.com/entities/luk-fook-holdings-intl-ltd" target="_blank" data-smartkarma-citation="entities:19054:1" rel="noopener">Luk Fook Holdings Intl (590 HK)</a> is outperforming <a href="https://www.smartkarma.com/entities/chow-tai-fook-jewellery-group" target="_blank" data-smartkarma-citation="entities:549:1" rel="noopener">Chow Tai Fook Jewellery (1929 HK)</a> due to its Hong Kong exposure.</li>
<li>Since entering 2026, Luk Fook has outperformed Chow Tai Fook by a significant margin of 9pp. We believe such a trend will continue for the rest of the year. </li>
<li>Our "Long Luk Fook, Short Chow Tai Fook" strategy is further supported by Luk Fook's cheaper PER and PEG multiples. </li>
</ul>


The 4Q FY26 operating statistics suggest that Luk Fook Holdings Intl (590 HK) is outperforming Chow Tai Fook Jewellery (1929 HK) due to its Hong Kong exposure.
Since entering 2026, Luk Fook has outperformed Chow Tai Fook by a significant margin of 9pp. We believe such a trend will continue for the rest of the year. 
Our "Long Luk Fook, Short Chow Tai Fook" strategy is further supported by Luk Fook's cheaper PER and PEG multiples. 


China Pair Trade: Long Luk Fook (590 HK), Short Chow Tai Fook (1929 HK)

Hong Kong

Chow Sang Sang Holdings International Limited is a prominent jeweler that manufactures and retails a wide range of jewelry and distributes watches. The company also engages in the wholesale of precious metals and trades in laboratory-grown diamonds and gemstones. Founded in 1934, its corporate headquarters are located in Kowloon, Hong Kong.

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Chow Sang Sang (116 HK)

Primer: Chow Sang Sang (116 HK) - May 2026

Chow Sang Sang is a well-established jeweler in Greater China with a strong brand heritage since 1934, demonstrating resilience and...

αSK

Increasing HK Duty Free Quota: The Beneficaries

Potential increase in duty-free quota for mainland visitors to Hong Kong to benefit retail sectors, with Luk Fook as the top jewellery play, Sa Sa...

Osbert Tang, CFA

Chow Tai Fook (1929 HK): What if Special Dividends Are Declared?

The market's assumption of no special dividends for CTF's FY24 result may be off - potential for an attractive 10.7% yield. The share price could...

Osbert Tang, CFA

China: Revival 2.0?

Chinese real estate prices impact stock market, Trump's tariff approach to China changes, undervalued stocks in Hong Kong offer high yield potential.

Henry Soediarko

China Pair Trade: Long Luk Fook (590 HK), Short Chow Tai Fook (1929 HK)

Chow Tai Fook issued a FY26 positive profit alert, suggesting an earnings growth of 45-55% due to better gross margin and operating leverage. The...

Osbert Tang, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Primer: Chow Sang Sang (116 HK) - May 2026

Chow Sang Sang is a well-established jeweler in Greater China with a strong brand heritage since 1934, demonstrating resilience and...

αSK

Increasing HK Duty Free Quota: The Beneficaries

​Potential increase in duty-free quota for mainland visitors to Hong Kong to benefit retail sectors, with Luk Fook as the top jewellery play, Sa Sa...

Osbert Tang, CFA

Chow Tai Fook (1929 HK): What if Special Dividends Are Declared?

​The market's assumption of no special dividends for CTF's FY24 result may be off - potential for an attractive 10.7% yield. The share price could...

Osbert Tang, CFA

China: Revival 2.0?

​Chinese real estate prices impact stock market, Trump's tariff approach to China changes, undervalued stocks in Hong Kong offer high yield potential.

Henry Soediarko

China Pair Trade: Long Luk Fook (590 HK), Short Chow Tai Fook (1929 HK)

Chow Tai Fook issued a FY26 positive profit alert, suggesting an earnings growth of 45-55% due to better gross margin and operating leverage. The...

Osbert Tang, CFA

Potential increase in duty-free quota for mainland visitors to Hong Kong to benefit retail sectors, with Luk Fook as the top jewellery play, Sa Sa...

The market's assumption of no special dividends for CTF's FY24 result may be off - potential for an attractive 10.7% yield. The share price could...

Chinese real estate prices impact stock market, Trump's tariff approach to China changes, undervalued stocks in Hong Kong offer high yield potential.