Chow Tai Fook (01929.HK) Comprehensive Analysis Report on the Hot Stock

Chow Tai Fook (01929.HK) has recently become a hot stock in Hong Kong stocks. The core reason is that its 2026 Fiscal Year First Half (1HFY2026) performance report shows the company has entered a strong recovery cycle. Performance highlights include: operating profit margin reaching 17.5% (five-year high, +30bps YoY) [1], the proportion of fixed-price jewelry sales increasing to 31.8%, driving gross margin to maintain a high level above 30% [1]; dividend payout ratio rising to 85.7%, with dividend per share increasing to HKD 0.22 [1]. At the same time, same-store sales in all core markets have returned to positive growth: Mainland China self-operated/franchised stores were +2.6%/+4.8% respectively, Hong Kong/Macau were +1.8%/+13.7% respectively [1], verifying the effectiveness of the store optimization strategy.

1. Significant results from brand transformation: Fixed-price jewelry sales reached HKD 3.4 billion (significant YoY growth) [1], launched the high-end jewelry collection “Timeless Harmony” [1], and jade product sales doubled [1], indicating the success of the brand’s transformation towards high-end and differentiation.
2. Clear global expansion strategy: Plans to open 6 new stores in Southeast Asia, Oceania, Canada, and the Middle East by June 2026 [1], opening up new space for long-term growth.
3. Attractive valuation: Current price is HKD 14.00, analysts’ average target price is HKD 17.76 [0], with an upside potential of 26.8%; dividend yield reaches 3.82% [0], which is attractive to value investors.

• Deepening brand transformation and expanding high-end product portfolio
• Global expansion into emerging markets
• Proactive dividend policy, strong appeal to value investors

• Macroeconomic slowdown affecting luxury consumption
• Gold price fluctuations affecting gross margin
• Intensified competition in the luxury goods market
• Risk of short-term correction in recent stock price

Chow Tai Fook (01929.HK) delivered strong performance in the first half of FY2026, with profit recovery, same-store sales growth, and significant brand transformation results. Despite macroeconomic and industry competition risks, the long-term growth prospect is clear. Investors need to pay attention to the stock price support level of HKD 13.50 and resistance level of HKD 15.00, and make decisions based on the progress of the company’s brand transformation and global expansion.