UBS: lowers the target price of Chow Tai Fook (01929.HK) to 16 Hong Kong dollars. Full-year profit meets expectations but dividend is lower.

According to the China Securities and Finance app, UBS released a research report stating that due to the high beta value, it raised the weighted average cost of capital (WACC) in the discounted cash flow (DCF) model from 9.3% to 10%. It decided to lower the target price of Chow Tai Fook (01929.HK) from 18.5 Hong Kong dollars to 16.0 Hong Kong dollars. This target price corresponds to a 15 times forecasted price-to-earnings ratio for the 2027 fiscal year, as well as a 7% dividend yield. The bank maintains a "buy" rating on Chow Tai Fook.