[ET Net News Agency, 13 January 2020] Nomura raised its target price for Chow Tai Fook
Jewellery (CTF)(01929) to HK$9.2 from HK$8 and maintained its "buy" rating.
The research house said CTF's 3Q FY2020 SSSG for China accelerated from -7% in 2Q to
+2%, with gold products reporting significant improvement from -15% to -1% while gem sets
also slightly improved from flattish growth in 2Q to +1%. HK SSSG improved to -35% versus
-42% in 2Q, mainly driven by the narrower SSS decline for gold products of -26% versus
-49% in 2Q.
Nomura maintained its FY2020 SSSG forecast and expects China to meet management's
guidance of low-to-mid single-digit growth. (KL)