CLSA: CHOW TAI FOOK (01929.HK) Reports Impressive 3FQ26 Results, Anticipates Challenges During Lunar New Year; Rating Maintained at Hold
Sales Performance: Chow Tai Fook reported strong same-store sales growth of 21.4% in mainland China and 14.3% in Hong Kong & Macau for 3FQ26, prompting a slight adjustment in sales and profit margin guidance for FY2026.
Future Projections: The company anticipates low- to mid-single-digit YoY growth in same-store sales during the Lunar New Year, while tightening January discounts and increasing marketing expenditures to boost February promotions.
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Daiwa Increases CHOW TAI FOOK's Target Price to HKD17, Maintains Buy Rating
Daiwa's Meeting with CHOW TAI FOOK: Daiwa's research report indicates that management of CHOW TAI FOOK believes consumer demand for gold jewelry will remain strong despite gold price fluctuations.
Consumer Purchasing Behavior: Management's insights align with industry trends, suggesting consumers are likely to purchase gold jewelry during price rallies rather than waiting for potential price drops.
Earnings Forecast Adjustment: Daiwa has raised its FY27 EPS forecast for CHOW TAI FOOK by 6%, anticipating increased sales in Hong Kong and Macau due to a widening retail price gap and stable gold prices.
Stock Rating and Target Price: CHOW TAI FOOK's stock rating has been reiterated as Buy, with the target price increased from HKD15.5 to HKD17.
CHOW TAI FOOK Announces Upcoming Price Increase for Gold Items in Mainland Outlets; Details on Timing and Magnitude Still Unclear
Price Adjustment Announcement: CHOW TAI FOOK plans to adjust the prices of gold products in its mainland stores after the Spring Festival, with changes expected to be implemented in mid-March.
Operational Policy: The company confirmed the price increase is part of its routine operational policy, which will be based on market conditions and product demand while maintaining quality and craftsmanship.
CHOW TAI FOOK Set to Increase Gold Product Prices in Chinese Stores by Up to 30% in Mid-March, According to Report
Price Increase Announcement: CHOW TAI FOOK has confirmed that gold products in their Chinese stores will see a price hike after the Spring Festival, expected to start in mid-March.
Expected Price Range: The price increase for fixed-price products is anticipated to be between 15-30%, with specific details depending on in-store price tag adjustments.
Cheng Yu-tung Family Trusts Raise Ownership in CTFE's Parent Company to 90.52%
Shareholding Changes: The Cheng Yu-tung family's two trusts increased their stake in Chow Tai Fook (Holding) Ltd (CTFH) from 81.03% to 90.52% as of December 5, 2025, marking a total increase of 9.49 percentage points.
Short Selling Activity: As of January 26, 2026, short selling for CTFH was reported at $22.47 million with a ratio of 17.75%, while Chow Tai Fook (01929.HK) had a short selling amount of $185.95 million and a ratio of 52.579%.
Internal Control Structure: The shareholding disclosure on December 5, 2025, indicated changes in the internal control structure of CTFH within the family trust, aligning with the recent shareholding adjustments.
Market Outlook: JPMorgan has upgraded NEW WORLD DEV to Neutral, anticipating a rebound in developers' earnings in the next fiscal year.
Jewelry and Gold Mining Stocks Soar as Gold and Silver Prices Reach Record Highs; LAOPU GOLD Jumps 14% to Six-Month Peak
Gold and Silver Prices Surge: Gold futures in New York reached a historic high of USD5,080.1 per ounce, while silver futures peaked at USD107.925, reflecting significant increases in precious metal prices.
Jewelry Stocks Performance: Hong Kong-listed jewelry stocks, particularly LAOPU GOLD, experienced substantial gains, with expectations of strong sales during the Spring Festival due to high gold prices and promotional activities.
Gold Miners Thrive: Gold mining companies like ZIJIN MINING and ZHAOJIN MINING saw their stock prices rise significantly, benefiting from the increasing gold prices and high trading volumes.
Short Selling Activity: Various stocks in the jewelry and mining sectors showed notable short selling ratios, indicating a mix of investor sentiment and market speculation amidst the rising prices of gold and silver.
Jewelry and Gold Stocks Perform Well; LAOPU GOLD Rises Approximately 7%; LUK FOOK HOLD Reaches 7.5-Year High; CHOW TAI FOOK Remains Weak
Gold and Silver Prices Surge: Gold prices are nearing US$5,000 per ounce, with spot gold last quoted at US$4,944.08, while spot silver reached US$98.64 per ounce, reflecting significant increases in both metals.
Impact on Jewelry Stocks: The rise in gold prices has led to increased market expectations for gold product prices, positively affecting jewelry stocks in Hong Kong, particularly LAOPU GOLD, which saw a notable increase in its share price.
Daiwa Increases CHOW TAI FOOK's Target Price to HKD17, Maintains Buy Rating
Daiwa's Meeting with CHOW TAI FOOK: Daiwa's research report indicates that management of CHOW TAI FOOK believes consumer demand for gold jewelry will remain strong despite gold price fluctuations.
Consumer Purchasing Behavior: Management's insights align with industry trends, suggesting consumers are likely to purchase gold jewelry during price rallies rather than waiting for potential price drops.
Earnings Forecast Adjustment: Daiwa has raised its FY27 EPS forecast for CHOW TAI FOOK by 6%, anticipating increased sales in Hong Kong and Macau due to a widening retail price gap and stable gold prices.
Stock Rating and Target Price: CHOW TAI FOOK's stock rating has been reiterated as Buy, with the target price increased from HKD15.5 to HKD17.
CHOW TAI FOOK Announces Upcoming Price Increase for Gold Items in Mainland Outlets; Details on Timing and Magnitude Still Unclear
Price Adjustment Announcement: CHOW TAI FOOK plans to adjust the prices of gold products in its mainland stores after the Spring Festival, with changes expected to be implemented in mid-March.
Operational Policy: The company confirmed the price increase is part of its routine operational policy, which will be based on market conditions and product demand while maintaining quality and craftsmanship.
CHOW TAI FOOK Set to Increase Gold Product Prices in Chinese Stores by Up to 30% in Mid-March, According to Report
Price Increase Announcement: CHOW TAI FOOK has confirmed that gold products in their Chinese stores will see a price hike after the Spring Festival, expected to start in mid-March.
Expected Price Range: The price increase for fixed-price products is anticipated to be between 15-30%, with specific details depending on in-store price tag adjustments.
Cheng Yu-tung Family Trusts Raise Ownership in CTFE's Parent Company to 90.52%
Shareholding Changes: The Cheng Yu-tung family's two trusts increased their stake in Chow Tai Fook (Holding) Ltd (CTFH) from 81.03% to 90.52% as of December 5, 2025, marking a total increase of 9.49 percentage points.
Short Selling Activity: As of January 26, 2026, short selling for CTFH was reported at $22.47 million with a ratio of 17.75%, while Chow Tai Fook (01929.HK) had a short selling amount of $185.95 million and a ratio of 52.579%.
Internal Control Structure: The shareholding disclosure on December 5, 2025, indicated changes in the internal control structure of CTFH within the family trust, aligning with the recent shareholding adjustments.
Market Outlook: JPMorgan has upgraded NEW WORLD DEV to Neutral, anticipating a rebound in developers' earnings in the next fiscal year.
Jewelry and Gold Mining Stocks Soar as Gold and Silver Prices Reach Record Highs; LAOPU GOLD Jumps 14% to Six-Month Peak
Gold and Silver Prices Surge: Gold futures in New York reached a historic high of USD5,080.1 per ounce, while silver futures peaked at USD107.925, reflecting significant increases in precious metal prices.
Jewelry Stocks Performance: Hong Kong-listed jewelry stocks, particularly LAOPU GOLD, experienced substantial gains, with expectations of strong sales during the Spring Festival due to high gold prices and promotional activities.
Gold Miners Thrive: Gold mining companies like ZIJIN MINING and ZHAOJIN MINING saw their stock prices rise significantly, benefiting from the increasing gold prices and high trading volumes.
Short Selling Activity: Various stocks in the jewelry and mining sectors showed notable short selling ratios, indicating a mix of investor sentiment and market speculation amidst the rising prices of gold and silver.
Jewelry and Gold Stocks Perform Well; LAOPU GOLD Rises Approximately 7%; LUK FOOK HOLD Reaches 7.5-Year High; CHOW TAI FOOK Remains Weak
Gold and Silver Prices Surge: Gold prices are nearing US$5,000 per ounce, with spot gold last quoted at US$4,944.08, while spot silver reached US$98.64 per ounce, reflecting significant increases in both metals.
Impact on Jewelry Stocks: The rise in gold prices has led to increased market expectations for gold product prices, positively affecting jewelry stocks in Hong Kong, particularly LAOPU GOLD, which saw a notable increase in its share price.
