Company Reports

We initiate coverage of Chow Tai Fook, the largest gold jewelry manufacturer and retailer in the Greater China region. The fixed-price jewelry revenue mix rose to 35% in fiscal 2026 from about 25% in fiscal 2021, driven by CTF's appealing product design and growing demand from young consumers.

We think Chow Tai Fook is well positioned to navigate the industry's shift from weight-based to fixed-price gold jewelry, given its scale, brand equity, and growing traction in design-led collections. This shift matters because fixed-price products carry higher margins than weight-based jewelry, which is priced largely off the prevailing gold price. The category is also being pulled forward by younger consumers, who increasingly value design, self-expression, and emotional appeal over gold content.