Goldman Sachs Revises China Jewelry Stocks Amid Gold Price Retreat - Yahoo Finance

AI desk brief

Goldman Sachs turned more cautious on China jewelry stocks after gold fell from a January peak of $5,595/oz to about $4,041/oz, warning that sector earnings upside from inventory gains and fixed-price product margins is fading. The bank cut FY26E/FY27E earnings estimates by 0%-38% below consensus and said downside risk persists into FY27-FY28 if spot prices stay near current levels, though it still sees a bull-case gold target of $5,325/oz by Q4 2027.

Stock calls were mixed: Chow Tai Fook was upgraded to Buy with a HK$13 target, supported by defensive earnings, hedging, and a cheaper valuation at 10x PE; Laopu Gold stayed Buy despite expected earnings cuts, with optionality from any gold rebound; Luk Fook was downgraded to Sell with a HK$17.9 target on the view it faces the steepest earnings pressure in a flat-to-soft gold environment.