Bank of China International's report states that the gold price will continue to perform well, but the impact on Chow Tai Fook (01929.HK) may be mixed. On one hand, the bank expects an increase in the gross margin of the company's gold products. However, on the other hand, the bank anticipates that the sales volume of its gold products may also face unfavorable factors, coupled with weak consumer sentiment. Overall, the bank expects the company to continue to face a slower sales momentum in the short term, which could lead to further operational leverage.

However, Bank of China International believes that reducing Chow Tai Fook's current dividend yield can provide some buffering, and still bullish on its brand image, when the market is ready for recovery, Chow Tai Fook's performance will outperform other companies. The bank maintains a "hold" rating for Chow Tai Fook, lowering the target price from 8.4 yuan to 6.7 yuan, equivalent to a forecasted P/E ratio of 10 times next year.