HSBC: Lowered Chow Tai Fook's target price to HK$7.7, rating 'in line with the market'

Golden Ten Data reported on August 26 that Morgan Stanley issued a research report pointing out that considering Chow Tai Fook (01929. HK) lowered its revenue rise forecasts for FY2024-26 by 11%, 13% and 12%, respectively, due to its net store closure trend and weak same-store sales performance in the fourth quarter of FY2024. At the same time, the bank expects Chow Tai Fook's profit to remain broadly unchanged as the gold price rise in the first half of 2024 and the favourable information factor from cost containment measures will be offset by operating leverage. Da Mo lowered Chow Tai Fook's FY2024-26 earnings forecasts by 11%, 16% and 11% respectively, and lowered the group price target price from HK$11 to HK$7.7, with a rating of "in sync with the market".