01929 Should I Buy

The analyst rating for CHOW TAI FOOK was reiterated as Buy due to several key reasons: 1. Strong Consumer Demand: Management indicated that the fundamental demand for gold jewelry among consumers would remain robust, despite fluctuations in gold prices. This suggests a resilient market for their products. 2. Consumer Behavior: The management's comments were consistent with industry trends, indicating that consumers are likely to accelerate purchases during a rally in gold prices rather than waiting for potential price declines. 3. Increased Earnings Forecast: Daiwa raised its FY27 EPS forecast for CHOW TAI FOOK by 6%, reflecting expectations of enhanced sales in Hong Kong and Macau, driven by a widening retail price gap and sustained strength in gold prices. 4. Target Price Increase: The target price for the stock was lifted from HKD15.5 to HKD17, indicating a positive outlook on the company's future performance. These factors collectively support the Buy rating and the increased target price for CHOW TAI FOOK.