Chow Sang Sang Expects Profit Surge 

Chow Sang Sang’s profit for the first half is anticipated to soar amid higher gold prices and the reduction of its store network. 

Profit is set to come to between HKD 900 million ($115.2 million) and HKD 920 million ($117.8 million) for the six months that ended June 30, the Hong Kong jeweler said in a preliminary announcement Tuesday. That compares with a profit of HKD 502 million ($64.3 million) for the same period a year ago. 

The expected profit increase is due to higher gross margins on sales of gold items, as the price of the yellow metal rose and demand for the product remained high, the company explained. The retailer also benefited from the shrinking of its store network. In March, Chow Sang Sang reported it had shut a net 74 stores amid a downturn in diamond demand.  

At the time, the jeweler said it did not foresee a recovery in the near term and intended to continue closing stores to minimize expenses. Other cost-control measures the company implemented also helped boost profit. 

Chow Sang Sang will publish its full results for the first half on August 27.

Image: A Chow Sang Sang store in Beijing, China. (Cathy Tam)