1929 (Chow Tai Fook Jewellery Group Ltd) vs Hang Seng (Hong Kong) Comparison

1929

Hang Seng (Hong Kong)

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1929

Hang Seng (Hong Kong)

Difference

1Y 3Y 5Y 10Y 15Y 20Y

1929

Hang Seng (Hong Kong)

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Hang Seng (Hong Kong)

1929

TSCO

ULTA

DKS

601888

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Chow Tai Fook Jewellery Group Ltd
Glance View

Market Cap

66.1B HKD

Industry

Retail

Chow Tai Fook Jewellery Group Ltd., a name synonymous with luxury and craftsmanship, traces its roots back to 1929 when it was founded in the bustling city of Guangzhou. Initially established in a small storefront, the company thrived on a commitment to quality, building its reputation with exquisite gold jewelry and traditional designs that resonated with Chinese cultural affinities. Today, its presence spans across Greater China and beyond, commanding attention in an industry defined by timeless elegance and high-volume demand. Central to Chow Tai Fook's operations is its vertically integrated model, where it meticulously manages each stage of the jewelry production and distribution process, from sourcing raw materials to crafting, retailing, and branding. By maintaining control over the entire value chain, the company not only ensures impeccable quality but also optimizes cost efficiencies, reinforcing a competitive edge in the crowded luxury market. The company generates revenue by capitalizing on its extensive retail network, which includes a vast number of stores in strategic locations across Asia. Each outlet is a gateway to a broad spectrum of products that range from classic gold trinkets to contemporary jewelry pieces adorned with precious gemstones, catering to diverse consumer tastes. Chow Tai Fook is adept at leveraging its rich heritage, aligning modern marketing strategies with deep-seated family values that appeal to a wide demographic. Additionally, they engage in astute inventory and risk management, adept at navigating fluctuating commodity prices and currency risks. This strategic foresight, paired with an unwavering dedication to quality and innovation in design, propels the company to retain its stature as a beacon of luxury, delighting customers with fine craftsmanship and fostering a timeless allure in every piece they create.

View Chow Tai Fook Jewellery Group Ltd Analysis

Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

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1929

vs

Hang Seng (Hong Kong)

Stocks Performance
1929 vs Hang Seng (Hong Kong)

Performance Gap
1929 vs Hang Seng (Hong Kong)

Performance By Year
1929 vs Hang Seng (Hong Kong)

Competitors Performance
Chow Tai Fook Jewellery Group Ltd vs Peers

Chow Tai Fook Jewellery Group Ltd
Glance View

Company

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1929 vs Hang Seng (Hong Kong)

Stocks Performance 1929 vs Hang Seng (Hong Kong)

Performance Gap 1929 vs Hang Seng (Hong Kong)

Performance By Year 1929 vs Hang Seng (Hong Kong)

Competitors Performance Chow Tai Fook Jewellery Group Ltd vs Peers

Chow Tai Fook Jewellery Group Ltd Glance View

Company

Help

Tools

Stocks

1929

vs

Hang Seng (Hong Kong)

Stocks Performance
1929 vs Hang Seng (Hong Kong)

Performance Gap
1929 vs Hang Seng (Hong Kong)

Performance By Year
1929 vs Hang Seng (Hong Kong)

Competitors Performance
Chow Tai Fook Jewellery Group Ltd vs Peers

Chow Tai Fook Jewellery Group Ltd
Glance View