Jefferies Research lifted its target price for Chow Tai Fook Jewellery (CTF) (01929) to HK$11.6 from HK$9.14 and maintained its "buy" rating.
The research house expects CTF to report COP (Core operating profit, i.e., ex hedging gain/loss) of HK$3.26bn, an 8% decline for 1H FY2021. Given the sales trend in China has been better than expected, Jefferies raised its FY2021-23 net profit forecasts by 11%-14%, as it expects better GPM (gross profit margin) and operating leverage.
Jefferies believes store penetration in China and recovery in the HK market will result in a 20% CAGR for earnings.
全新節目《說說心理話》青少年不可以戀愛！？真實個案講述驚心動魄經歷► 即睇
