Zhitong Financial APP learned that Lyon issued a research report reiterating Chow Tai Fook's (01929) "buy" rating, raising its target price from HK $12.2 to HK $17.8, saying it had a positive view on the company's plan to open more than 700 new stores in third-to fifth-tier cities in the mainland in fiscal year 2022.

The bank said its performance in fiscal 2021 beat market expectations, with sales and net profit up 24 per cent and 108 per cent year-on-year and 5 per cent and 32 per cent compared with fiscal 2019, as well as a gradual recovery in Hong Kong and Macau. The bank pointed out that due to the impact of the epidemic, part of the marriage demand has been delayed from last year to this year, which is expected to stimulate sales of sufficient gold goods in the short term. In the long run, the bank believes that with the accelerated consolidation of the industry, the market share of mainstream brands will further increase.