BUZZ-HK's Chow Tai Fook at 4-week low on weak results, sales

Reuters2023-11-24

** Shares of Chow Tai Fook Jewellery fall 11.1% to HK$10.70, lowest since Oct 27, snapping two sessions of gain

** Stock marks the biggest one-day pct rise since Nov 25, 2022 if losses hold; biggest pct loser in Hang Seng Index

, Hang Seng Composite Index and Hang Seng Commerce & Industry Index

** Jewellery retailer says its net profit for six months ended September grew 36.4% YoY to HK$4.55 bln ($583.71 mln with core operating profit $(COP)$ up 37.7% and revenue up 6.4%

** "We continue to expect FY2024 to be a year of gradual recovery" - Co

** Daiwa says Chow Tai Fook's net profit beat but revenue miss while a 6.7% YoY same store sales growth in mainland China for Oct 1-Nov 18 is trailing expectation signalling still weak consumer sentiment

** "Thus, we expect the share price to react negatively in the near term to the implied 2H FY24 outlook" - Daiwa

** Jefferies maintains "buy" but trims price target to HK$17.02 from HK$18.64

** Hang Seng Composite Index eases 1.4%, Hang Seng Index down 1.6%

** Stock down 28% YTD

($1 = 7.7949 Hong Kong dollars)

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))

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