The analyst rating for Chow Tai Fook (01929.HK) is a "Buy" with a target price of HKD 18.2. This rating is based on several factors:
1. SSSG Performance: The company achieved same-store sales growth (SSSG) in the third quarter of FY26, which was in line with the broker's expectations.
2. Upward Revision of Results Guidance: Chow Tai Fook's management revised its results guidance upward, which exceeded market expectations.
3. Conservative Gross Margin Target: The broker considers the company's gross margin target to be conservative, as it is based on a gold price assumption that is lower than the current market price.
4. Sales Expectations: Management anticipates that SSSG during the Lunar New Year period will be in the low to mid-single digits, and fixed-price gold products are expected to significantly contribute to overall sales.
5. Earnings Forecast Adjustment: Citi fine-tuned its earnings forecast for Chow Tai Fook for 2026 to exceed the company's results guidance, indicating confidence in the company's financial performance.
Overall, these factors contribute to the positive outlook and the "Buy" rating from the analyst.
