Lates News

The Bank of China International research report indicates that Chow Tai Fook's net profit for the 2025 fiscal year, although down 9% year-on-year, still exceeds market expectations by 7%, reflecting the strong gold price's positive contribution to its gross profit margin. Recent same-store sales of the group have improved, reflecting that consumers are more willing to purchase gold in the current cycle, as well as the successful strategies of the group, including offering more fixed-price gold products and focusing on sales efficiency in stores. The report predicts that the group's sales will gradually recover in the 2026 fiscal year. The report also points out that although the group's performance is still affected by fluctuations in gold prices and potential hedging profits or losses, the impact is expected to be smaller than in the 2025 fiscal year according to management's expectations. In addition, the bank believes that its dividend (6.4% in the 2026 fiscal year) is attractive, maintaining a "buy" rating and raising the target price from HK$11.2 to HK$13.8.