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<Research> Citi: CHOW TAI FOOK (01929.HK) Results In Line; Cuts TP to HKD15.4
Recommend 7 Positive 9 Negative 9 |
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Citi published a research report stating that CHOW TAI FOOK (01929.HK)'s results for FY2026 ended March were in line with expectations. Net profit increased 52% YoY to HKD9 billion. Management's guidance for sales and profit margins for FY2027 ending March next year both exceeded expectations. From April to May this year, same-store sales in mainland China resumed 20% growth, while same-store sales in Hong Kong, Macau and overseas markets rose 41%, reflecting a recovery in demand for pure gold jewelry amid a pullback in gold prices. As of March this year, CHOW TAI FOOK had eight new high-end image stores, with productivity reaching 8 to 10 times that of average stores, representing a 57% increase in FY2026. Productivity of renovated stores also rose 15%. The group plans to open more high-end and self-operated stores in FY2027, accounting for more than 50% of new stores, and the net number of store closures is expected to narrow significantly. Citi raised its net profit forecasts for FY2027 to FY2028 by 8% to 9%, mainly due to a 3% to 7% upward revision in revenue forecasts and higher net margin assumptions. The broker maintained a Buy rating and lowered the TP from HKD16.7 to HKD15.4, corresponding to a forecast FY2027 P/E ratio of 15x. (gc/da) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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