Investment Rating - The report maintains an "Accumulate" rating for the jewelry industry [1] Core Insights - The jewelry industry is experiencing a significant increase in gold prices, which have risen approximately 130% since March 2024. This has led to complex fluctuations in consumer sentiment regarding gold jewelry consumption [9][10] - A survey conducted during the 2026 Spring Festival revealed that 67% of respondents had purchased gold in the past three years, and 55% had done so in the past year, indicating a growing trend in gold purchases despite rising prices [55][56] - The report identifies two scenarios that could lead to a recovery in consumer sentiment towards gold jewelry: a stabilization of gold prices over 3-5 quarters or a gradual rise to a new high [57][58] Summary by Sections Industry Trends - Gold prices have shown a rapid increase, with a 60% rise from August 2018 to February 2024, and a 55% increase in 2025 alone [9] - The survey indicates that 71% of respondents primarily purchase gold jewelry from brand stores, highlighting the importance of brand value in the gold jewelry market [56] Survey Insights - The survey covered 485 respondents, primarily urban white-collar workers, and revealed that 67% felt that people around them were making money from gold purchases, which could stimulate demand [51][22] - 78% of respondents who bought gold in the past year purchased jewelry rather than gold bars, indicating that investment and consumption needs are intertwined [57] Investment Recommendations - The report recommends focusing on companies with a direct sales model, such as Lao Pu Gold, Cai Bai Co., and Liufu Group, which are expected to benefit from rising gold prices and increased sales [60][61] - It also suggests monitoring franchise-based brands like Chow Tai Fook and Lao Feng Xiang, which are currently undervalued but may see a recovery in demand [60][62]