Morgan Stanley: Reiterates Chow Tai Fook's "Overweight" Rating; Same-store Sales in Last Quarter Meet Expectations

Jin10 data April 25th news, Morgan Stanley published a research report indicating that Chow Tai Fook's same-store sales decline in the last fiscal quarter has narrowed, in line with expectations. The group's operational quality improvement, better product mix, increased store productivity, and expanded profit margins offset the drag from the rising store closure rate. The bank reiterated the group's "overweight" rating, with a target price of HKD 10.5. Morgan Stanley mentioned that Chow Tai Fook's revenue for the fiscal year 2025 is expected to meet its guidance, while gross margin and operating profit margin will exceed guidance. The bank believes that the group’s continued focus on operational quality strategy may lead to a reduction in net store closures in the fiscal year 2026. The bank expects the group's earnings per share compound annual growth rate for the fiscal years 2025 to 2027 to be around 20%.