JPMorgan: Raises Chow Tai Fook's earnings forecast for the next two years and maintains "Overweight" rating.

Jin10 data reported on June 17 that JPMorgan issued a research report stating that after holding a non-deal roadshow for Chow Tai Fook (01929.HK) and communicating with the management, it is expected that there is upward potential for the operating guidance in FY2026. This is mainly based on the bank's prediction that gold prices will rise to $3,840 per ounce in FY2026, compared to the company's guidance which is based on the assumption of gold prices reaching $3,200 to $3,400 per ounce. JPMorgan believes that the sales of Chow Tai Fook's priced gold products remain strong, contributing 19% to the sales in FY2025, significantly up from 7% the previous year. The improvement momentum of the product mix is expected to continue in FY2026, with the proportion likely rising to 20% to 23%. JPMorgan is also optimistic about Chow Tai Fook's ongoing brand transformation, thus raising its earnings forecast for FY2026 to FY2027 by 9% to 14%, increasing the target price from HKD 11.4 to HKD 16.4, and maintaining an "overweight" rating, expecting a 53% growth in earnings per share for FY2026.