Chow Tai Fook Shares Climb Over 3% in Morning Session as JPMorgan Says Company More Resilient Than Peers Amid Industry Volatility

Chow Tai Fook (01929) rose more than 3% in the morning session, with shares up 3.11% as of press time, trading at HK$11.60 with a turnover of HK$77.9486 million.

Latest data from the Hong Kong Stock Exchange shows that on October 22, Board Chairman Cheng Kar-shun increased his holdings by 4.9994 million shares of Chow Tai Fook at HK$10.9317 per share, for a total amount of approximately HK$54.6519 million. After the increase, his latest shareholding stands at approximately 39.4994 million shares, representing a latest shareholding ratio of 0.40%.

JPMorgan's latest research report notes that Chow Tai Fook has shown more resilience than the overall industry amid weak consumer sentiment and gold price volatility, and the bank has named it its top pick in China's jewelry sector.

JPMorgan stated that Chow Tai Fook's retail sales declined only 0.5% year-on-year, store productivity remained stable, and strong growth in Hong Kong, Macau, and international businesses helped offset weakness in the Chinese mainland market.

Additionally, 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.