Merrill Lynch gave 00116-HK a buy rating for the first time, with a target price of HK $34, calling it the number one jewellery market in Hong Kong, and the mainland market also has long-term growth potential. with the expansion of the mainland sales network and strong growth in same-store sales, as well as improved product mix and higher gross profit margins in Hong Kong and Macau, profits are expected to grow by 37%, 21% and 18% from 2011 to 2013. The bank is expected to announce a strong interim industry on the 18th of next month, becoming a potential catalyst.

According to Merrill Lynch, Zhou Shengsheng will further seize the mainland luxury goods market, with mainland stores accounting for 71 per cent and mainland sales accounting for 33 per cent. The contribution of mainland sales is expected to increase to 60 per cent in the next decade. Although the expansion rate of opening 50 stores a year is slower than that of its peers, the 100% self-run retail model is more suitable for its high-end positioning.

Chow Sang Sang rose 4.82% to HK $29.35.