Lyon: CHOW TAI FOOK (01929) shows strong resilience in same-store sales in the first quarter, maintaining a "hold" rating.

Lyon released a research report stating that CHOW TAI FOOK (01929) maintained resilience in retail sales and same-store sales growth in the first quarter of the 2027 fiscal year ending in June this year. Retail sales in the mainland and Hong Kong and Macau markets increased by 10.7% and 44.8% respectively year-on-year, while same-store sales growth was 19.6% and 41.7% respectively. However, in July, foot traffic slowed down due to weather conditions and the World Cup. Lyon maintains a "hold" rating on CHOW TAI FOOK with a target price of HK$10.7. The bank stated that, unlike last year, gold products priced in the period outperformed those priced at current rates. It is expected that if the price of gold remains at around $4,100 per ounce, the product mix may tend towards gold-priced products, affecting the company's gross margin and operating profit margin. However, with the support of hedge income, net profit expectations can remain unchanged.