Morgan Stanley released a research report stating that it maintains CHOW TAI FOOK (01929) at a "Market Perform" rating, with a Target Price of 8.3 Hong Kong dollars.
The bank expects that the stock price of CHOW TAI FOOK has about a 70% to 80% chance of outperforming the market index in the next 30 days, pointing out that yesterday (the 9th), the Central Political Bureau meeting revealed a strong tone for stimulus policies, indicating a need to expand domestic demand, and called for support measures to stabilize the housing market and stock market, anticipating stability in Asset prices, which positively impacts Gold and jewelry consumption.
The bank also indicated that each year from December to February of the following year is traditionally the peak sales season for jewelry, while CHOW TAI FOOK's stock price has already declined by about 40% this year, underperforming compared to the MSCI Chinese Index and the Hang Seng Index during the same period, and expects that the future intensity and execution details of the central government's stimulus measures, the pace of inflation, and the stability of Gold prices will affect whether the company's valuation can be reappraised by the market.
