Daiwa: Reiterates "buy" rating on Chow Tai Fook, same-store sales in the last quarter meet expectations.

Morgan Stanley released a research report stating that Chow Tai Fook's same-store sales decline in the last quarter narrowed as expected. The group's operational quality improvement, better product mix, store productivity enhancement, and profit margin expansion offset the drag from the increase in store closures. The bank reiterated its "overweight" rating on the group with a target price of HK$10.5. HSBC mentioned that Chow Tai Fook is expected to meet its revenue guidance for the fiscal year 2025, while gross margin and operating margin are expected to exceed the guidance. The bank believes that the group's continued focus on operational quality strategy may reduce the net store closures in fiscal year 2026. The bank expects the group's earnings per share compound annual growth rate for the fiscal years 2025 to 2027 to be around 20%.