HK Stock Market Move | CHOW TAI FOOK (01929) rises by more than 9%, recently receiving a series of target price upgrades from major banks. Daiwa points out that its stock price is still severely undervalued.

CHOW TAI FOOK (01929) surged over 9%, reaching 9.03% at the time of writing, at 8.69 Hong Kong dollars, with a turnover of 75.77 million Hong Kong dollars. In terms of news, Daiwa pointed out that it raised CHOW TAI FOOK's rating from "underperform" to "buy", with a target price raised from 7 Hong Kong dollars to 11 Hong Kong dollars. Daiwa believes that the market has overestimated concerns about competition with LAOPU GOLD and underestimated the positive impact of CHOW TAI FOOK's brand upgrading measures. In addition, the bank believes that the market has overlooked the potential for CHOW TAI FOOK's traditional gold series HUA Collection to evolve into an independent brand, unlocking significant value. Furthermore, the bank believes that CHOW TAI FOOK's previous rapid store expansion strategy is rapidly turning around, with net profit expected to bottom out in the second half of the 2024 fiscal year, and the company's stock price is still severely undervalued. Morgan Stanley released a research report stating that it upgraded CHOW TAI FOOK's rating from "in line with market" to "hold", with a target price raised from 8.3 Hong Kong dollars to 10.5 Hong Kong dollars. The bank stated that the rapid rise of high-end gold products reflects consumers' willingness to pay a premium for quality craftsmanship and design, and expects more local brands to target this consumer group, with the most representative brands expected to continue to perform well. Based on key jewelry purchase criteria, the bank ranked 18 domestic and international jewelry brands, with CHOW TAI FOOK Jewelry performing particularly well.