[ET Net News Agency, 10 January 2020] Jefferies Research initiated coverage on Chow Tai
Fook Jewellery (CTF)(01929) with a "buy" rating and a target price of HK$8.97.
The research house noted CTF's capability to surprise the market with new product
offerings such as the HUA collection. It has achieved success in a multi-brand strategy
and invested in new technology.
From FY2020, it is set to accelerate its store openings once it is satisfied these
foundations are in place. Jefferies expects CTF's net profit growth of 4%/9%/19% (ex
hedging impact) on -0.5/+10/+12% in sales for FY2020/21/22, with contribution from China
accounting for 78%/89% of sales/EBIT by FY2022. (KL)