Morgan Stanley: Lower estimate for Chow Tai Fook (01929.HK) to 14.1 Hong Kong dollars, rating "outperforming the market"

According to the Wisdom Financial APP, Macquarie released a research report stating that it is expected that the revenue of Zhou Dasheng (01929.HK) in the second half of the 2025 fiscal year will decrease by 15% year-on-year. Operating profit is expected to increase by 15% year-on-year, exceeding the bank's expectations of 13% and the market consensus of 11%. Net profit is expected to increase by 74% year-on-year, exceeding the bank's expectations by 24%. Macquarie believes that Zhou Dasheng will achieve stable profit growth in the 2026 fiscal year with the recovery of demand for gold jewelry and efficiency improvement. They have placed Zhou Dasheng on their select buy list and given it an "outperform" rating. Based on a constant forecasted P/E ratio of 15 for the 2026 fiscal year, the bank has lowered the target price for Zhou Dasheng by 1.4% to 14.1 Hong Kong dollars.