[ET Net News Agency, 17 July 2019] Goldman Sachs said Chow Tai Fook Jewellery's
(CTF)(01929) HK & Macau SSSG came in below the research house's estimates due to a more
serious sales deterioration in June while China SSSG tracks in line.
This echoed Sa Sa's (00178) weakness in June, as reported last week, amid macro
uncertainties with reduced tourist consumption, Goldman noted.
Looking ahead, CTF's strategy of expanding into lower-tier cities via their franchise
model has supported solid growth in China with managed costs. But with a higher base
especially for HK into September-quarter and uncertain consumption sentiment, Goldman
expects volatility ahead.
The research house maintained its "neutral" rating on CTF on a fair valuation, with a
target price of HK$7.9. (KL)