＜Research＞CICC Lowers TP of CHOW TAI FOOK (01929.HK) to $9.13; Rapid Gold Price Hike Impacts 1FQ Sales

　　CICC covered in a report that CHOW TAI FOOK (01929.HK) -0.530 (-6.700%) Short selling $31.64M; Ratio 33.045% announced its operating data for 1FQ25 ended June, with retail sales value down 20% YoY, including a 19% YoY decline in the mainland and a 29% YoY decline in Hong Kong, Macau and other markets.

　　According to the report, the rapid rise in gold prices affected CTF's same-store performance in the Mainland, Hong Kong and Macau, and the channel continued to be optimised and adjusted. The rapid rise in gold prices since the end of March this year caused some consumers to hold off from buying gold jewellery products, which, coupled with the impact of a high base in the same period last year, resulted in a 20% decline in retail sales for the quarter. The group continued its channel optimisation in the Mainland, focusing on shop efficiency and profitability, and closed 91 Chow Tai Fook Jewellery retail outlets in 1FQ25.

　　Related NewsDaiwa Downgrades CHOW TAI FOOK (01929.HK) to Underperform, Slashes TP to $7

　　CICC maintained its FY25 and FY26 EPS forecasts of $0.7 and $0.78 respectively on CTF and kept its Outperform rating. Considering that the valuation pivot of the industry has come down, the broker reduced CTF's target price by 15% to $9.13.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-24 12:25.)

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