Ge Long Hui·2025-10-21 03:53Core Viewpoint - UBS reports that Chow Tai Fook's sales for the second fiscal quarter of 2026 (July to September) increased by 4.1% year-on-year, indicating a positive trend in consumer sentiment and sales performance during the Golden Week holiday [1] Sales Performance - Same-store sales growth rates for Chow Tai Fook's retail stores in mainland China, franchised stores, and other market outlets were 7.6%, 8.6%, and 6.2% respectively [1] Earnings Forecast Adjustments - UBS has lowered its earnings per share (EPS) forecast for Chow Tai Fook for the fiscal year 2026 by 13%, while increasing its EBITDA forecast by 8% due to rising gold prices impacting related loan losses and convertible bond interest costs [1] - The strong gross margin and reduced share count partially offset these negative impacts [1] Future Projections - For fiscal years 2027 to 2028, UBS has raised its EPS forecast by 1% to 2% due to improved gross margins driven by pricing products and a lower share count [1] Target Price and Rating - UBS has increased its target price for Chow Tai Fook from HKD 16 to HKD 18.35 and maintains a "Buy" rating [1]