CICC has released a research report maintaining its earnings per share forecast for CHOW TAI FOOK (01929) at HK$0.90 for FY2026 and HK$0.96 for FY2027, while introducing a new forecast of HK$1.02 for FY2028. Considering a sector-wide decline in valuations, the target price has been reduced by 11% to HK$15.86, with an "Outperform" rating retained.

CHOW TAI FOOK disclosed its operational results for the fourth quarter of FY2026, ending in March, showing a slight 1.5% year-on-year decrease in total retail value. Within this, same-store sales in mainland China saw a modest increase of 0.2% for directly operated stores but declined by 5.8% for wholesale channels. Conversely, the Hong Kong and Macau markets reported a significant 40% year-on-year growth in same-store sales, surpassing expectations.

The report noted that since April, same-store sales for both self-operated and加盟 stores in mainland China and self-operated stores in Hong Kong and Macau have shown positive year-on-year growth. Management anticipates that the scale of net store closures in mainland China will narrow quarter-by-quarter in FY2027. Furthermore, benefiting from improved customer traffic and demand, the Hong Kong and Macau markets are expected to maintain robust growth during the same period. Additionally, in overseas markets, the company plans to gradually advance the development of its e-commerce business alongside expanding into new markets and channels.