Glonghui, January 16 | Bank of China International published a research report showing that retail sales of Chow Tai Fu increased 46% year-on-year in the third fiscal quarter, and same-store sales in mainland China increased 22.7%. The data is encouraging, reflecting the Group's effective capture of consumer demand in high- and low-tier cities, and its performance was superior to that of peers. The bank believes that the Group's business continues to improve and management's guidance for the 2024 fiscal year suggests that the business continues to grow moderately. Although the macroeconomic signals are mixed, it is believed to be a positive sign. The bank reaffirmed its “buy” rating and raised the target price from HK$15.1 to HK$15.3. The bank said that although it is too early to forecast sales during the Lunar New Year period, Chow Tai Fook's management expects the strong growth momentum to continue due to good market demand for its new product line. According to the bank, the number of cross-border visitors remained strong in January, and the total retail sales value (RSV) momentum in Hong Kong and Macau is expected to remain strong. The Group maintained its guidance for FY2024, including year-on-year growth in same-store sales in the Mainland, an increase in core operating profit margin by 50 to 80 basis points, and a net increase of 300 to 400 retail locations. The bank believes that the Group can achieve the relevant goals, and believes that the renewed guidelines are a positive sign. Net profit for the 2024 fiscal year is expected to increase 38% year over year.