Chow Tai Fook Jewellery Group, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Hildy Ling from Morgan Stanley maintained a Buy rating on the stock and has a HK$19.00 price target.
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Hildy Ling has given his Buy rating due to a combination of factors that suggest strong future growth for Chow Tai Fook Jewellery Group. The company has provided guidance indicating a significant year-over-year increase in earnings per share for the second half of fiscal year 2026, with expectations of a 75-90% growth. This optimistic outlook is supported by better-than-expected revisions in gross and operating profit margins, which have been adjusted upward beyond previous forecasts.
Moreover, despite maintaining a cautious revenue guidance, the company has experienced robust sales growth in recent months, particularly in China and Hong Kong. The management’s confidence is further reflected in the increased interim dividend per share, indicating a positive growth outlook. Additionally, the competitive landscape appears favorable, with the company benefiting from recent VAT reforms, which are expected to advantage leading brands like Chow Tai Fook. These factors collectively contribute to the Buy rating, as they suggest potential upside in the company’s financial performance and stock value.