Guosen Securities: Gold and jewelry prices fluctuate but the long-term growth of leading companies remains unchanged.

Guosen Securities released a research report stating that although the current fluctuations in gold prices may have short-term emotional impacts on the industry, the actual fundamental impact is expected to remain relatively stable as the industry's growth logic shifts towards relying on brand building, technological innovation, and narrative cultural capabilities that bring about "alpha returns". On one hand, referring to the rush of purchases following the gold price correction in 2013 and the continued enthusiasm for investment purchases for several months, enterprises focused on investment in the gold industry still have further growth support for short-term performance. On the other hand, Hong Kong-funded jewelry brands with pricing advantages and outstanding operational capabilities in Hong Kong and Macao, as well as top enterprises with good product design or differentiation capabilities, are likely to further strengthen their business advantages and achieve sustained high growth. The gold and jewelry industry enters the peak consumption season at the end of the year, with overall sector valuations at low levels. The short-term fluctuations in gold prices have not affected the growth logic of core industry leaders. Enterprises with a high proportion of investment in the gold business, as well as companies with strong standardized product capabilities, still have the potential for stable growth. Recommendations: China Gold International Resources Corp, Lao Feng Xiang Co., Ltd, Chow Tai Fook Jewelry Group Ltd, Luk Fook Holdings International Ltd, and Tse Sui Luen Jewellery (International) Ltd.