Editor’s Note
This article, based on a CICC report, details Chow Tai Fook’s recent price adjustments for its fixed-price gold products. The analysis suggests these strategic increases aim to uphold the brand’s premium positioning and support profitability.
CICC published a report stating that, according to Jiemian News, Chow Tai Fook (01929.HK) adjusted the prices of its fixed-price gold products for the third time this year on December 19th, with price increases for some products ranging between 4% and 16%. The firm believes that moderate price adjustments are expected to help maintain the brand’s premium image and ensure good profit performance.
The report noted that gold prices have shown a volatile upward trend since 2025. As of December 18th, the closing price of AU9999 on the Shanghai Gold Exchange had cumulatively increased by 59%. In response to rising costs, gold and jewelry companies have been adjusting product prices to pass them on to the end consumer. Following two previous adjustments in March and October, Chow Tai Fook’s third price hike this year is expected by CICC to be in the high single-digit percentage range. Against the backdrop of rising gold prices, consumer demand for brand strength and product design in gold jewelry is increasing. Therefore, CICC views moderate price adjustments as a way to sustainably enhance Chow Tai Fook’s brand premium, smooth out cost fluctuations, and ensure strong product profitability.
CICC maintained its earnings per share forecasts for Chow Tai Fook for the 2026 and 2027 fiscal years at HK$0.87 and HK$0.93, respectively, and kept its “Outperform” rating. The firm continues to be optimistic about the company’s improving brand strength and channel optimization. However, considering valuation fluctuations in the sector, it lowered the target price by 13% to HK$16.89.
