Citigroup raises Chow Tai Fook Jewellery's target price to HKD 14, with full-year performance in line with expectations.

Golden Ten Data reported on June 13 that Citi published a research report pointing out that Chow Tai Fook Jewelry (01929. HK) financial results for the fiscal year ended March this year were in line with expectations, with revenue down 18%, net profit down 9% and a payout ratio of 88% for the period. Management expects same-store sales to continue to improve, with mid-single-digit growth for the full fiscal year 2026, similar to the bank's estimate. Regardless of the outlook for gold prices, the bank maintains a positive view on Chow Tai Fook Jewellery, saying that a rise in the gold price will spur the growth of fixed-price gold products, and a decline will lead to a recovery in demand for heavyweight products and support its earnings. The bank believes that the valuation of the stock remains attractive, and raised the company's net profit forecast for FY2026 and FY27 by 20% and 17% respectively, raising the target price from HK$10.2 to HK$14 with a buy rating.