HK Stock Market Move | CHOW TAI FOOK(01929) Falls Over 6%; Second Fiscal Quarter Mainland Sell-Through Under Some Pressure; First-Half Profit Expected to Rise Benefiting from Gold Borrowing Gains, etc.

CHOW TAI FOOK (01929) traded lower in the morning session, falling more than 6% at one point. As of press time, it is down 5.75% at HK$10.32, with turnover of HK$133 million. On the news front, on the evening of October 22, CHOW TAI FOOK announced that for the three months ended September 30, 2026, retail value decreased by 0.5% year-on-year. Among this, retail value in Mainland China fell 5.3%, while retail value in Hong Kong, Macau and other markets rose 33.2%. In terms of same-store sales, the company's directly operated same-store sales in the mainland increased by 2.2% year-on-year, while franchise same-store sales decreased by 2.9% year-on-year. The company also released a profit forecast for the first half of fiscal year 2027 ended September 30, 2026, expecting net profit to increase by 90% to 100% year-on-year. This is mainly attributable to fair value gains arising from the revaluation of gold borrowing contracts, compared with fair value losses recorded in the same period last year; in addition, the company's sales performance in core markets also improved.