Chow Tai Fook (01929.HK) Popular Driver Analysis: Rising Gold Prices and Strategic Transformation Boost Stock Performance

Chow Tai Fook (01929.HK) has emerged as a popular stock in Hong Kong, with core drivers including a year-to-date gold price surge of over 50% [3], notable results from strategic transformation [0], widespread analyst optimism [4,5], and excellent stock performance [0]. In H1 FY2026, the company achieved revenue of HK$38.986 billion and operating profit of HK$6.823 billion, with gross margin remaining above 30% [0]. Although short-term results missed expectations leading to a stock price drop [2], the company has gained institutional favor [0] through store optimization (closing over 600 stores in six months [6]), product structure adjustment (priced jewelry contributing over 30% of mainland retail value [7]), and improved pricing strategies.

1. Cross-domain Correlation
   : Rising gold prices and increased demand in the jewelry industry form a synergistic effect; Chow Tai Fook’s pure gold price exceeded 1300 yuan per gram [3], driving growth in gold product sales.
2. Deep Implication
   : Leading enterprises enhance anti-cyclical capabilities through strategic adjustments; mainland same-store sales growth of 35.1% [0] reflects transformation effectiveness.
3. Systemic Impact
   : The jewelry industry accelerates structural adjustment; high-end products (priced jewelry series grew by 48% [0]) become growth engines.

:

• Short-term results missed expectations, leading to short-term stock price volatility [2];
• Gold price fluctuations may affect profit margins [3];
• Short-term cost pressure during store optimization [6].

:

• Sustained growth in demand for high-end products, with great potential in the priced jewelry series [7];
• Analysts raised target prices to the range of HK$18-18.7 [4,5], leaving room for valuation improvement;
• Excellent performance of the Hong Kong stock market, with favorable overall sentiment [0].

: Need to focus on the subsequent trend of gold prices and the improvement of H2 FY2026 performance [2].

As a leading enterprise in the jewelry industry, Chow Tai Fook has benefited from rising gold prices and its own strategic transformation, with a year-to-date stock price increase of 125.45% [0], far outperforming the Hang Seng Index. Despite short-term performance pressure, institutions maintain a buy rating [4,5], and its long-term development potential is worth attention. Investors should balance short-term volatility and long-term value, and view industry cycles and the company’s transformation progress rationally.