Goldman Sachs: Gives CHOW TAI FOOK (01929) a "neutral" rating with a target price of 8 Hong Kong dollars.

Goldman Sachs released a research report stating that CHOW TAI FOOK (01929) is rated "neutral" with a target price of 8 Hong Kong dollars. CHOW TAI FOOK announced its third quarter financial data for the 2025 fiscal year, with mainland same-store sales performing slightly better than the bank's expectations, decreasing by 16% year-on-year, in line with management's expectations, with a narrower decline. Management has lowered its target for store closures, expecting a similar scale of store closures in the fourth quarter of the 2025 fiscal year as in the third quarter, indicating that more than 500 stores may be closed on a net basis in the second half of the year. Goldman Sachs stated that as the impact of store closures on revenue is minimal, same-store sales performance remains a key focus, and the bank has not yet seen a turning point. Taking into account the third quarter financial data and store closures for the 2025 fiscal year, the bank has slightly adjusted its net profit forecast for 2024-2026 by 1% or less, and expects the company's net profit for the 2025 fiscal year to reach 6.6 billion Hong Kong dollars.