Glonghui, March 13 | Bank of China International published a research report stating that as gold prices continue to reach new highs, gold jewellery is expected to continue to outperform most retail categories in China. Although the bank remains optimistic about the recent performance of the jewellery industry, it also believes that the industry landscape may become more competitive. The bank anticipates that when consumers' purchasing power begins to decline, the consolidation of related industries will become more obvious. As for the next phase, the bank believes that the increase in same-point sales growth is more important than the expansion of the Chinese store market. Therefore, BOCI reaffirmed its “buy” ratings for Chow Tai ?$#@$ and Lukfook, and set the target prices for Chow Tai ?$#@$ and Lukfook at HK$15.3 and HK$29.1, respectively. Bank of China International also anticipates that after the pandemic, Chinese consumers will become more cautious and choose to spend more money to buy products deemed to be worth the money. If gold prices continue to soar amid bullish expectations, particularly in the face of fear of missed opportunities, strong demand for Chinese jewellery may continue until at least 2024. Furthermore, the bank also indicated that although the recent performance of listed companies in the Hong Kong jewellery industry lags behind their mainland A-share peers. However, due to the strong business of the Hong Kong jewellery industry in Hong Kong and Macau, relevant listed companies may catch up. Among them, the number of visitors from Hong Kong and Macau continued to recover in early 2024, which will also support the company's revenue. The bank expects that as more consumers in the Greater Bay Area buy gold jewellery in Hong Kong and Macau, the relevant figures will maintain growth recovery in 2024, and maintain a positive attitude towards the performance of Chow Tai ?$#@$ and Lukfook.