Damo: Maintaining Chow Tai Fook's (01929) “Overweight” rating target price of HK$14.5, profit forecast for the first half of the year beat expectations

The Zhitong Finance App learned that Morgan Stanley released a research report saying that Chow Taifu (01929) announced operating updates for the second quarter of fiscal year 2027 and profit forecasts for the first half of fiscal year 2027, and the performance was better than expected. The bank maintained Chow Tai Fook's “gain” rating, with a target price of HK$14.5.

The bank pointed out that Chow Tai Fook's same-store sales growth in the second quarter beat expectations. The Mainland and Hong Kong and Macau increased by 2% and 30% respectively. Among them, the Hong Kong and Macau markets clearly outperformed their peers. The Group's net profit increased 90% to 100% year-on-year in the first half of the year, reaching about 4.8 billion to 5.1 billion yuan, higher than the 85% increase expected by the bank.

Chow Tai Fook's same-store sales declined year-on-year in October, mainly due to the high base for the same period last year and the misalignment of the Mid-Autumn Festival holiday period, but it is still in line with management expectations. The base effect is expected to ease from November.