Komo expects that in the second half of the fiscal year, Chow Tai Fook's sales will increase 21% year over year, and core operating profit (COP) will increase 24%.
The Zhitong Finance App learned that J.P. Morgan Chase released a research report stating that it maintains Chow Tai Fook's (01929) “gain” rating, with a target price of HK$20. The company's same-store sales for the third quarter of fiscal year 2024 were better than expected. The mainland market increased 23% year over year, Hong Kong, Macao and other markets increased 67%.
The bank believes that the market will respond positively and is more confident in the company's revenue growth; the expected full-year results may be better than management guidance, thanks to the upgraded product portfolio, strong recovery in the Hong Kong market, and favorable gold prices. In addition, Chow Tai Fook's sales in the second half of the fiscal year are expected to increase 21% year over year, and core operating profit (COP) is expected to increase by 24%; core operating profit for the whole year is expected to rise 10% to 15%, higher than market expectations and management guidelines, because the bank believes the market underestimated the contribution of the upgraded product portfolio and the recovery of the Hong Kong market.