"Lyons: Jefferies lowerr the target price of Chow Tai Fook (01929.HK) to 10.7 Hong Kong dollars, pay attention to the fluctuation of gold prices."

According to the Zhitong Financial APP, a report released by Lyon stated that although they appreciate the efforts of Chow Tai Fook Jewellery Group (01929.HK) in enhancing retail performance and pricing of gold products (accounting for 35.4% of sales in the 2026 fiscal year), the continued softening of gold prices may bring pressure on sales and gross profit margins due to fluctuations in sales volume and structure. Visibility of same-store sales growth in the mainland is still low, and the mainland market faces intense competitive risks, so the "hold" rating is maintained. In response to the downward risk of performance and gross profit margins in the 2026 fiscal year, the bank has lowered its net profit forecasts for the 2027 to 2028 fiscal years by 2% to 4%, and has also lowered the target price from 11.2 Hong Kong dollars to 10.7 Hong Kong dollars, equivalent to a forecast of a 10 times price-earnings ratio for the next 12 months.