Jin Rong Jie·2026-01-05 04:50Core Viewpoint - Citigroup has initiated a 30-day upward catalyst observation for Chow Tai Fook, anticipating strong operational performance for the third quarter of the fiscal year 2026 to be announced in January [1] Group 1: Sales Performance - Following strong performances in October and November, Citigroup expects the sales growth in December to remain robust, driven by rising fixed-price gold product prices [1] - The unexpected strong sales following the adjustment of the value-added tax policy is projected to positively impact the group's gross margin in the second half of fiscal year 2026 and the first half of fiscal year 2027 [1] Group 2: Profit Forecasts and Ratings - Citigroup has raised its net profit forecasts for the group for fiscal years 2026, 2027, and 2028 by 8%, 7%, and 6% respectively [1] - The rating for the group has been maintained at "Buy," with the target price increased from HKD 17 to HKD 18.2, reflecting the revised profit forecasts [1]