"Stock Market Gold Mining - Lin Jia Heng" Zhou Liu Fu rises against the market trend, is good news coming soon?

"Stock Market Gold Mining" Zhou Liu Fu (06168) was listed in June this year at a price of HKD 24. The stock price has performed well since then, reaching a high of HKD 45.86, an increase of up to 90% from the listing price. The group currently operates approximately 4,000 retail stores in China and Hong Kong, with a partnership model where the company holds 51% and partners hold 49%, allowing for complementary advantages between coordinators and operators. The group combines online traffic and brand advantages to enhance offline sales: the group binds quality partners to improve network scale and quality, and operates in a division of labor and corporate manner to enhance overall efficiency. When online performance is good, offline sales will increase.

Recently, the company launched the Trendy Gold series, taking advantage of the rising gold prices, which caters to the tastes of younger consumers and aligns with the mass consumption model. This year, the group plans to open 10 new stores in Hong Kong and Macau, with plans for 15 new stores in Hong Kong, 5 in Macau, 2 in Singapore, and 3 in the Philippines next year.

Last weekend, the Chinese government announced the cancellation of the value-added tax exemption on gold jewelry, which has a certain impact on the costs of retail gold jewelry merchants. According to a report from "Economic Digest" on Monday (3rd) at noon, after the announcement, the stock prices of Lao Pu Huang Jin (06181) fell by 7.9%, Chow Tai Fook (01929) fell by 7.6%, and Luk Fook (00590) fell by 8.4%. However, there seemed to be no impact on Zhou Liu Fu, whose stock price still rose by 0.7%, indicating that this news has little effect on the group.

That evening, I saw a report from "NetEase" stating that the gold price quotes for Chow Tai Fook, Luk Fook, King Fook, Chao Hong Ji, Xie Rui Lin, and Zhou Da Sheng were all RMB 1,259 per gram, while Zhou Liu Fu's gold price quote was RMB 1,120 per gram. This price advantage will surely attract consumers, and its sales amount should significantly increase.

Typically, when a company's stock price rises against the market trend, it is expected that some positive news will follow in the future. Therefore, speculators may consider seizing the opportunity. If Zhou Liu Fu's stock price falls back from the upper line of the Bollinger Bands, it can be accumulated in stages. It is hoped that its stock price can continue to extend upwards along the upper line of the Bollinger Bands for a few more days. "Honorary President of the Hong Kong Stock Analysts Association, Managing Director of Guonong Securities, Lin Jia Heng"

* The author does not hold the above shares.

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