CICC has maintained its earnings per share forecasts for CHOW TAI FOOK (01929) at HK$0.9 for FY2026 and HK$0.96 for FY2027, while introducing a new FY2028 forecast of HK$1.02. Considering a sector-wide valuation pullback, the firm has reduced its target price by 11% to HK$15.86 but reaffirmed its "Outperform" rating.

The company reported its operational performance for the fourth quarter of FY2026, ending in March, showing a slight 1.5% year-on-year decline in total retail value. In mainland China, same-store sales for self-operated and wholesale channels grew by 0.2% and fell by 5.8%, respectively. Meanwhile, the Hong Kong and Macau markets outperformed expectations, with same-store sales surging 40% year-on-year.

The report noted that since April, same-store sales for CHOW TAI FOOK's self-operated and franchised stores in mainland China, as well as self-operated stores in Hong Kong and Macau, have all achieved positive year-on-year growth. Management anticipates that the scale of net store closures in mainland China will narrow quarter-by-quarter in FY2027. They also expect the Hong Kong and Macau markets to sustain robust growth, supported by improving tourist traffic and consumer demand.

Additionally, in overseas markets, the company plans to gradually develop its e-commerce business alongside expanding into new markets and sales channels.