Daiwa released a research report stating it has downgraded CHOW TAI FOOK (01929) from a "Buy" to an "Outperform" rating.

The brokerage believes that the current trajectory for gold prices remains directionally unclear. Following a strong start to the 2027 fiscal year ending June 30, same-store sales growth may also face a slowdown.

Despite the downgrade, Daiwa still prefers CHOW TAI FOOK among gold and jewelry stocks, citing the company's strong earnings outlook and an attractive dividend yield of 6%. The target price remains unchanged at HK$13.7.