HK Stock Market Move | CHOW TAI FOOK (01929) surged nearly 6% in early trading, with institutions pointing to the industry leader's product differentiation upgrade as the reason. The company's same store performance is gradually improving.

CHOW TAI FOOK (01929) soared nearly 6% in the morning session, rising by 5.92% to HK$9.31 as of press time, with a turnover of HK$64.66 million. CMSC released a research report stating that after the rapid rise in gold prices in 2024 and the differentiation of end demand, the current gold jewelry industry's channel dividends have peaked, and leading companies are embarking on a path of product differentiation and upgrading. The report pointed out that top gold jewelry companies have begun to transform, using products as a new growth driver. Top brands have started to leverage their existing craftsmanship or product advantages, further emphasizing personalization and design, such as Lao Pu's traditional gold, CHOW TAI FOOK's Forbidden City/Chuanfu series, Guangdong CHJ Industry IP/Zhenjin series, and Chow Tai Seng Jewellery's National Treasure series, using products as a new driver. The report further pointed out that CHOW TAI FOOK is currently adjusting its inefficiencies in the sinking market, after over-expansion in the past and industry pressure in 2024. The company continues to close inefficient stores in the sinking market, with a net closure of 261 CHOW TAI FOOK jewelry retail points in mainland China in FY25Q3, reducing the total number of jewelry stores in mainland China from around 7500 to 6685 during the peak period. Due to the rapid growth in sales of fixed-price products and the closure of inefficient stores, the same-store sales decline narrowed to double-digit levels in FY25Q3.