JP Morgan raised CHOW TAI FOOK's target price to HK$17 and maintained a "neutral" rating.

J.P. Morgan released a research report stating that CHOW TAI FOOK (01929) retail value in the third quarter increased by 18% year-on-year, surpassing expectations. In addition, benefiting from factors such as improved product mix, channel optimization, rising gold prices, and cost control, the company's profit margin performance is strong. Furthermore, management has raised guidance for the 2026 fiscal year, including target revenue growth in the high single digits; same-store sales growth in the high single digits to high double digits; gross margin of 31.5% to 32.5%; operating profit margin of around 20%; and SG&A ratio of around 13%. Considering the continuous rise in gold prices, J.P. Morgan believes that CHOW TAI FOOK's profit margin prospects still have further room for improvement, raising the company's earnings forecast for 2026 to 2028 by 2% to 6%, with a target price increase from HK$16.4 to HK$17, maintaining an "overweight" rating.