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

Chow Tai Fook (01929.HK) is a leading jewelry retailer in China and globally. On January 2, 2026, it became a hot stock in Hong Kong, with the core catalyst being Northeast Securities’ first coverage on December 29, 2025, giving a ‘Buy’ rating [1][2][3]. This rating is based on the company’s solid performance in the first half of FY2026 (as of September 30, 2025): turnover reached HK$38.986 billion (basically flat year-on-year), operating profit increased by 0.7% to HK$6.823 billion, and operating profit margin of 17.5% hit a five-year high [1][2][3]. The company drives growth through optimizing product structure (high-value product revenue increased by 9.3%), strengthening online channels (online retail value increased by 27.6% year-on-year), and IP collaborations (Black Myth: Wukong, NBA series), and has more than 5,600 retail outlets in mainland China [3].

From the perspective of price and volume, on December 29, 2025, the stock opened at HK$12.97, reached a high of HK$13.09, a low of HK$12.58, and closed at HK$12.59, with a daily decline of 1.79%, volume of approximately 2.878 million shares, and turnover of HK$37.12 million; the 52-week price range was HK$6.43 to HK$16.73 [5][6]. Previously, the stock had a single-day increase of over 3% in late December 2025, reflecting the market’s positive response to its performance recovery and analyst ratings [5].

1. Analysts are unanimously optimistic
   : All 18 covering analysts have given a ‘Buy’ rating, with an average target price of HK$17.43, implying an upside potential of 38.01% compared to the current price (HK$12.63), showing the market’s confidence in the company’s long-term growth [5].
2. Structural improvements support growth
   : Institutions like CICC maintain an ‘Outperform’ rating, recognizing the company’s optimized profit performance through price adjustments, and product structure upgrading and online channel expansion lay the foundation for sustained growth [4].
3. Performance recovery validates effective strategies
   : The solid performance in the first half of FY2026 validates the effectiveness of the company’s channel optimization, product upgrading, and online transformation strategies. The 47.8% growth in sales of iconic IP series further consolidates brand influence [3].

• Continuous product structure optimization and online channel expansion will drive revenue growth [3];
• International expansion plans (new markets such as Oceania, Canada, and the Middle East) provide new space for long-term growth [3].

• Gold price fluctuations may affect the company’s inventory value and consumer demand [3];
• If the pace of overseas store expansion is lower than expected, it will affect long-term growth potential [3];
• If future quarterly performance is lower than market consensus, the stock price may correct [3];
• The current P/E ratio is 21.00 times, so attention should be paid to the risk of overvaluation [5].

Chow Tai Fook (01929.HK) became a hot stock in Hong Kong due to positive ratings from institutions like Northeast Securities and solid first-half FY2026 performance. The company’s optimizations in product structure, online channels, and IP collaborations have achieved significant results, gaining unanimous optimism from analysts. Despite risks such as gold price fluctuations, overseas expansion, and performance forecasts, the market remains confident in its future growth, with analysts’ average target price implying a 38% upside potential.