CICC: Maintaining Chow Tai Fook's (01929) “Outperform the Industry” rating, the target price was reduced to HK$7.84

Zhitongcaijing · 10/16 02:49

The Zhitong Finance App learned that CICC released a research report stating that it lowered the target price of Chow Tai Fook (01929) by 14% to HK$7.84 to maintain the “outperforming industry” rating.

The bank believes that although the popular jewelry industry is currently under great pressure, Chow Tai Fu still maintains great advantages in scale, management, and innovation as the leading brand in the industry. Considering that terminal retail sales are still under pressure, the company lowered its 2025 and 2026 EPS forecasts by 18% and 12% to HK$0.58 and HK$0.68.

According to CICC, the overall price of gold has shown an upward trend since July-September. At the end of September, the price of AU9999 on the Shanghai Gold Exchange was 595 yuan/gram, an increase of 33% over the previous year. It is expected that under the pressure of high gold prices, Chow Tai Fook's terminal sales will still face some pressure. Facing industrial pressure from rising gold prices, Chow Tai Fook is focusing on improving the brand, which is reflected in new channel plans and continuous new product launches, while reducing cash and expenses, and delaying some non-core projects.