HSBC: Despite the recent decline in gold prices, it is expected that Chow Tai Fook's profits will continue to grow.

Lina Yan and Yimin Wang of HSBC Global Investment Research stated in a report that despite the recent drop in gold prices, Chow Tai Fook's profit growth is expected to continue. They said that the decrease in gold prices may stimulate demand for weighted gold jewelry. They also added that the lower gold prices should improve the operational efficiency of this Hong Kong jewelry company and strengthen its dividend capital. HSBC raised Chow Tai Fook's target price from 13.50 Hong Kong dollars to 14.80 Hong Kong dollars and maintained a buy rating. The stock rose by 0.7% to 12.90 Hong Kong dollars.