Zhitong Financial APP learned that Lyon released a research report that maintained Chow Tai Fook Jewellery's (01929) "buy" rating and raised its target price from HK $15.60 to HK $16.50. It is believed that the opening of new stores, the gradual recovery of same-store sales growth in various regions and buybacks will be the catalyst for share prices.

According to the report, the company's revenue in fiscal 2022 was slightly higher than the bank's expectations, but due to an unrealised loss of 800m yuan on gold loans and an unrealised profit of 300m yuan compared with the same period last year, the profit during the period was 5 per cent lower than the market and the bank's expectations. Excluding the impact, net profit rose 20 per cent year-on-year, higher than the bank's expected growth of 17 per cent, mainland business recovered in June, same-store sales fell 28 per cent compared with April-May, and sales in Hong Kong and Macao also improved in the first quarter.