Why is Chow Sang Sang stock surging today?

Chow Sang Sang Holdings International's stock experienced a significant surge of 16.7% to HKD 14.09 on Tuesday. The company's preliminary profit forecast for the six months ended June 30, 2026, indicated a substantial increase in earnings, ranging between HKD 2.1 billion and HKD 2.2 billion. This represented a year-on-year growth of approximately 130% to 142%, compared to HKD 910 million in the same period of 2025.

Chow Sang Sang attributed this remarkable rise to two key factors: a notable improvement in retail sales performance across its major markets and a shift from unrealized losses to unrealized gains on the mark-to-market revaluation of precious metal lending positions, driven by the sharp increase in gold prices. The stock opened at HKD 13.4 and continued to gain momentum throughout the session, reaching a high of HKD 14.25, nearing but not surpassing its 52-week high of HKD 15.74. However, the broader Hong Kong market proved challenging, with the Hang Seng index falling by 0.8%.