In the first half of the year, gold and jewelry companies saw their performance soar, leading to a trend of buying gold
Recently, with the release of the semi annual reports of gold and jewelry listed companies, the performance of gold and jewelry enterprises has been "booming", becoming the "top performers" of A-shares.
Taking Caibai Group as an example, in the first half of 2023, the company achieved a revenue of 8.361 billion yuan, a year-on-year increase of 56.85%; The net profit attributable to shareholders of the listed company was 412 million yuan, a year-on-year increase of 65.81%, approaching the level of 460 million yuan for the entire year of 2022.
Why did gold and jewelry companies perform so well in the first half of the year? According to the semi annual reports of listed companies, the global gold market has shown a good growth momentum in the first half of 2023, coupled with a positive trend in China's economy. Consumer demand has been released, and the willingness of consumers to purchase gold and jewelry products has increased. At the same time, the fluctuation and upward trend of gold prices have also stimulated the consumption vitality of gold products.
According to statistics from the China Gold Association, the national gold consumption in the first half of this year was 554.88 tons, an increase of 16.37% compared to the same period in 2022. Specifically, in terms of categories, gold jewelry reached 368.26 tons, a year-on-year increase of 14.82%; 146.31 tons of gold bars and coins, a year-on-year increase of 30.12%.
From a data perspective, gold jewelry, bars, and coins have maintained rapid growth, and the growth rate of bars and coins is even stronger. In response, the China Gold Association stated that due to the sustained and stable growth of residents' income and the increase in demand for hedging, investment and consumption of physical gold continue to grow rapidly.
The increase in gold sales has driven the performance improvement of related enterprises. For enterprises with a large proportion of investment products, their performance driving effect is more obvious.
Faced with the impressive performance report of gold and jewelry companies in the first half of the year, many people are concerned whether this trend can continue?
Li Yungui, Secretary of the Board of Directors of Caibai Co., Ltd., believes that currently, it is expected that gold prices will remain high in the second half of the year, showing a volatile trend.
The World Gold Council previously stated that seasonal factors indicate that gold demand may rebound after the second quarter. Given the low base in 2022, the year-on-year growth rate in 2023 is expected to reach double digits. In terms of gold jewelry, various consumer stimulus policies may contribute to the growth of gold jewelry demand, but factors such as high domestic gold prices may hinder the growth of gold jewelry demand.
