In "Major Banks," China International Capital Corporation (CICC) lowered the target price for CHOW TAI FOOK to 16.89 yuan. The price adjustment will help improve profit performance

CICC published a report stating that, according to Jiemian News, on December 19th, Chow Tai Fook (01929.HK) adjusted the price of its fixed-price gold products for the third time this year, with some products seeing price increases ranging from 4% to 16%. The firm believes that moderate price adjustments are expected to maintain the company's brand premium and good profit performance.

The report indicated that since 2025, gold prices have shown a trend of fluctuating increases. As of December 18th, the closing price of AU9999 on the Shanghai Gold Exchange has risen by 59%. In response to rising costs, gold jewelry companies are also adjusting product prices to pass on to the end consumers. After adjusting the prices of fixed-price gold products in March and October, Chow Tai Fook has raised product pricing for the third time this year. The firm expects this adjustment to be in the high single digits. Against the backdrop of rising gold prices, consumer demand for gold jewelry brand strength and product design is increasing, thus it is believed that moderate price adjustments can sustainably enhance Chow Tai Fook's brand premium and smooth out cost fluctuations, ensuring good profitability for the products.

CICC maintains its earnings per share forecast for Chow Tai Fook at 0.87 and 0.93 yuan for the fiscal years 2026/2027, maintaining an "outperform industry" rating. The firm continues to be optimistic about the company's brand strength enhancement and channel optimization, but considering the volatility in industry valuations, it has lowered the target price by 13% to 16.89 yuan