Morgan Stanley: Cuts Zhou Dafu's target price to HK$14.1, rating "Outperform the Market"

Macquarie released a research report stating that it is expected that Chow Tai Fook's revenue 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 with the recovery in demand for jewelry and efficiency improvements, Chow Tai Fook will achieve steady profit growth in the 2026 fiscal year. They have placed Chow Tai Fook on their recommended buy list with an "outperform the market" rating. Based on a unchanged forecast of a 15 times price-to-earnings ratio for the 2026 fiscal year, the bank has lowered Chow Tai Fook's target price by 1.4% to 14.1 Hong Kong dollars.