JPMorgan Raises Chow Tai Fook (01929) Price Target to HK$19, Names It Top Pick in China Jewelry Sector

Stock News11-03 16:30

JPMorgan has released a research report stating that Chow Tai Fook (01929) has shown greater resilience than the broader industry amid weak consumer sentiment and gold price volatility, and the bank has named it its top pick in the China jewelry sector. The price target has been raised from HK$18.5 to HK$19, with an "Overweight" rating reaffirmed.

The bank noted that Chow Tai Fook's retail sales declined only 0.5% year-on-year, store productivity remained solid, and strong growth in Hong Kong, Macau, and international operations helped offset weakness in the mainland China market.

The company has guided for net profit growth of 90% to 100% year-on-year for the first half of the fiscal year, though underlying gross margin and operating profit margin remain below previous expectations.

JPMorgan has broadly maintained its earnings forecasts for Chow Tai Fook for fiscal years 2027 to 2029, and expects earnings in the second half of fiscal year 2027 to decline by a high single-digit to low double-digit percentage year-on-year.

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