The Zhitong Finance App learned that Lyon released a research report stating that it gave Chow Tai ?$#@$ (01929) a “outperforming market” rating, with a target price of HK$10.6. Although sales performance outperformed peers during the Lunar New Year, medium-term pressure still exists, including stores that need to end losses, and that sales of gemstone products will increase over time.

According to the report, according to reports from high-end shopping malls and gold and jewelry distributors, consumption of luxury goods and gold jewelry was booming during the Lunar New Year. One of the major high-end shopping malls in Beijing is expected to increase by more than 10%, while the first week of the Lunar New Year increased by more than 20%. A jewellery distributor in the eastern Mainland indicated that sales performance benefited from Lunar New Year and Valentine's Day promotions.

The bank pointed out that Chow Tai Fook's sales outperformed its peers in the fourth quarter of last year and before the Lunar New Year. Sales in January and February are expected to increase by more than 30% year-on-year, mainly benefiting from the low base effect. Other brands generally had an increase of more than 20%. Higher gold prices drive sales of gold products, but some favorable factors are offset by price competition. It is estimated that aggressive discounts in the future, as well as moderate growth in gemstone products compared to gold, may affect gross margin performance.