[ET Net News Agency, 24 November 2023] HSBC Global Research lowered its target price
for Chow Tai Fook (01929) to HKD12.2 from HKD13.2 and maintained its "hold" rating.
The research house said it believes management can deliver resilient earnings to provide
dividend support to its share prices. However, amid the overall soft consumer sentiment in
China, successful execution of brand revamp strategy will be key to driving positive
momentum on earnings, on which it has low visibility of the potential success of the
branding strategy.
It lowers net profit estimates by 5-8% for FY24-26, mainly reflecting slower expansion
growth in Mainland China. (RC)