UBS: Chow Tai Fook (01929.HK) may be undervalued, target price raised to HK$16.

According to the app of China Fortune, UBS released a research report stating that based on the latest operating performance, performance guidance, higher same-store sales growth expectations, smaller gross margin pressure and more operational expense savings of Chow Tai Fook (01929.HK), the operating profit forecast for Chow Tai Fook from the fiscal year 2026 to the fiscal year 2027 is raised by 20% to 21%, and the earnings per share forecast is also raised by 21% to 30%. The target price is raised from 12 Hong Kong dollars to 16 Hong Kong dollars. It is forecasted that earnings per share in fiscal year 2026 will increase by 51% year-on-year, mainly due to reduced gold loan losses, as well as brand transformation and product portfolio improvements. The rating is "Buy".