On July 16, Chow Tai Fook rose 3.05% in regular trading, trading at HK$12.18, with turnover of HK$37.21 million. The rally was driven by a combination of an institutional earnings upgrade and signs of consumer demand recovery amid falling gold prices.

CICC recently published a research report raising Chow Tai Fook's FY2027 and FY2028 earnings per share forecasts by 11% and 10% respectively to HK$1.1, citing strong sales performance. The firm maintained its target price of HK$15.86, corresponding to 15x FY2027 estimated P/E, with an Outperform rating. The broker noted that Chow Tai Fook's April-May mainland China same-store sales grew 20% for directly-operated stores and 15% for franchisees, while Hong Kong and Macau same-store sales surged 41%.

On the demand front, domestic branded gold jewelry retail prices have continued to decline, with Chow Tai Fook's pure gold jewelry now quoted at RMB 1,217/gram, down over RMB 450 from the year's peak. Multiple store locations have reported significantly increased foot traffic, signaling a recovery in consumption. Chow Tai Fook's FY2026 attributable profit rose 52.2% to HK$9.004 billion, with operating margin reaching a five-year high of 20.0%, driven by its premium brand transformation strategy.

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