HK Stock Market Move | Translations: CHOW TAI FOOK (01929) falls more than 4% in the afternoon. Changes in the ownership structure of CHOW TAI FOOK aim to strengthen the capital structure.

CHOW TAI FOOK (01929) fell more than 4% in the afternoon, closing down 4.24% at HK$13.1 with a turnover of HK$272 million. On the news front, there have been changes in the ownership structure of CHOW TAI FOOK. According to information disclosed by the Hong Kong Stock Exchange, the family of Cheng Jiachun, the owner of CHOW TAI FOOK Capital, will transfer nearly 54% of the shares of CHOW TAI FOOK Jewelry to a subsidiary named Beyond Luck Limited, which is owned 65% by CHOW TAI FOOK Enterprises and 35% by CHOW TAI FOOK Capital. This ownership restructuring aims to strengthen the capital structure of CHOW TAI FOOK and unlock business value, with CHOW TAI FOOK Enterprises becoming the parent company of the core businesses of the family, including CHOW TAI FOOK Jewelry, CTF Services, and Shanghai New World. Previously, Credit Suisse pointed out that sales and profits in the first half of the fiscal year 2026 for CHOW TAI FOOK were slightly below market consensus, but the guidance for same-store sales growth remained unchanged, and profitability guidance was raised. They forecast a 3% increase in sales and a 40% increase in net profit for the fiscal year 2026, with gross profit margin and operating profit margin at 30.6% and 18% respectively. Credit Suisse has raised the 12-month target price for CHOW TAI FOOK from HK$12 to HK$13, maintaining a forward P/E ratio of 12 times; and they expect the sales performance in the next peak season for CHOW TAI FOOK to be crucial for the stock price.