Key read-across from major Chinese jewelry players‘ SSSG and mall trends

Research evidence excerpt

Key read-across from major Chinese jewelry players‘ SSSG and mall trends

Update

July 20, 2026 06:34 AM GMT

Morgan Stanley Asia Limited+MChina Gold & Jewelry | Asia Pacific Hildy Ling

Equity Analyst

Key read-across from major Hildy.Ling@morganstanley.comLillian Lou +852 2239-7834

Lillian.Lou@morganstanley.com +852 2848-6502

Chinese jewelry players' SSSG

and mall trends

Key Takeaways China/Hong Kong Consumer

Asia Pacific

Weight-based gold SSSG stayed healthy in June, but may have slowed Industry View In-Line

sequentially. Luk Fook's 2Q China SSSG was 16% vs. >20% on Apr 1-Jun 210.

Premium fixed-price gold demand YoY improved sequentially in June, as declines

in China gold jewelry sales narrowed at key malls.

HK/Macau demand remained robust in June. Luk Fook's 2Q HK/Macau SSSG of

+41% was in line with Apr 1-Jun 21.

Chow Tai Fook's 2Q revenue and profit trends should outperform Laopu, while

Laopu's demand recovered sequentially.

Stable gold prices and RMB appreciation should provide a more supportive

backdrop for Chow Tai Fook.

Following recently announced 2QCY26 (Apr-Jun) trends at Luk Fook (590.HK0, not

covered) and Chow Sang Sang (116.HK, not covered), as well as shopping mall

operators' (covered by Stephen Cheung) Jun-26 trends, our read-across are as

follows:

Chow Tai Fook (1929.HK, OW): CTF will report 1QFY27 (Apr-Jun) operating data in

late July. We expect the SSSG trend to be largely similar to Apr-May (China SSSG:

+20%; HK/Macau: +41%). We do not expect CTF to revise F27 guidance at the 1QF27

briefing call, despite current gold price (~US$4K) being lower than its assumption

(US$4.3K), as guidance was only announced less than a month ago. In our view, the

stable gold price environment is positive to demand for weight-based products and

lower-tier cities.