According to reports, UBS has issued a research note stating that it has adjusted its target price for Chow Tai Fook <01929> from HKD 16 to HKD 18.35 based on a discounted cash flow analysis. The new target price implies price-to-earnings ratios of 24 times and 18 times for the fiscal years 2026 and 2027, respectively, maintaining a "Buy" rating. UBS indicated that Chow Tai Fook's sales in Q2 2026 (July to September) experienced a year-on-year increase of 4.1%, with domestic and international growth rates at 3% and 11.4%, respectively, aligning with their expectations. Same-store sales growth rates for retail stores in mainland China, franchised stores in mainland China, and markets elsewhere increased by 7.6%, 8.6%, and 6.2%, respectively. Management noted that sales growth during the Golden Week holiday slightly outpaced industry data and observed an improvement in consumer sentiment. UBS further mentioned that management indicated that due to rising gold prices, gross and operating profit margins for the first half outperformed previous expectations, though this benefit was offset by higher losses from gold loans. The company plans to reassess its full-year performance guidance when it releases complete results for the first half of the fiscal year in November. UBS also raised its earnings before interest and taxes per share forecast for 2026 by 8%, considering improved gross margins driven by pricing strategies and a lower share count, while increasing its earnings per share projections for 2027 and 2028 by 1% to 2%.