BOCI International has released a research report designating LUK FOOK HOLD (00590) as its preferred stock within the sector and increasing its target price to HK$35.9. Despite recent significant volatility in gold prices, the firm anticipates robust consumption of gold jewelry will persist in the first quarter of this year. The wealth effect stemming from stock market gains, combined with a more accommodative monetary environment, is expected to further encourage consumers to choose jewelry as a means of value storage and investment. Under the current market structure, the report forecasts two distinct categories of winners will emerge: high-end retailers capable of commanding substantial premiums, exemplified by Lao Feng Xiang (06181); and retailers with a strong market presence in Hong Kong and Macau, where store foot traffic has seen a notable increase since the gold value-added tax hike in November 2025.
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