ZHOU LIU FU has been included in the Hang Seng Composite Index and is expected to become a target for the Hong Kong Stock Connect

On August 22, Hang Seng Indexes Company announced the results of the quarterly review of the Hang Seng Index series as of June 30, 2025, in which ZHOU LIU FU was included in the Hang Seng Composite Index. The changes will be implemented after the market closes on September 5 (Friday) and will take effect on September 8 (Monday), at which time the Shanghai and Shenzhen Stock Exchanges will adjust the scope of investable stocks under the Hong Kong Stock Connect accordingly. According to a research report from Huatai Securities, ZHOU LIU FU may be included in the Hong Kong Stock Connect as it meets a series of criteria including market capitalization, liquidity, and listing time. CITIC Securities released a research report analyzing the investment value of ZHOU LIU FU. The team believes that ZHOU LIU FU has rapidly developed due to its light asset model, which focuses on integrated R&D and designated supplier sourcing, as well as a more attractive franchise policy compared to its peers. Currently, the mass jewelry market is trending towards lightweight and fashionable products, and the company's light asset model effectively ensures efficiency. At the same time, the company balances innovation and plans to enhance brand momentum in the future, deeply exploring the domestic and international gold and jewelry consumption markets. The company is given a 22x PE for 2025, corresponding to a target price of HKD 44, with an initial coverage rating of "Buy."