On July 7, Chow Tai Fook fell 3.06% in regular trading, trading at HK$11.39 per share, with turnover of approximately HK$40.67 million.

The decline was driven by continued weakness in gold prices, which pressured gross margins and operating profit margins on weight-based gold jewelry products — a category accounting for approximately 60% of the company's total sales. Peer Luk Fook Holdings declined 1.14% on the same day, reflecting broad sector weakness. International gold prices have retreated nearly 30% from January highs above $5,700/oz, with domestic brand jewelry prices falling over 500 yuan/gram from peak levels earlier this year.

Institutional views remain divided on margin outlook amid declining gold prices. CLSA maintained a Hold rating with a target price of HK$10.7, citing low visibility on mainland same-store sales growth and competitive risks. Meanwhile, Morgan Stanley maintained an Overweight rating with a HK$19 target, and UBS kept a Buy rating with a HK$16 target, noting that lower gold prices could release pent-up demand for weight-based products despite near-term margin compression.

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