By Bingyan Wang


Chow Tai Fook Jewellery Group Ltd. shares fell Tuesday, after the Hong Kong-based jeweller said its mainland China managing director is resigning two years into his tenure.

The stock fell by as much as 9.6% to HK$14.10 (US$1.80) in early trading.

Chow Tai Fook said late Monday that Chan Sai-Cheong will retire on March 31, two years after he took on the China managing director role. Wong Siu-Kee, an executive director and managing director with the company, will assume Mr. Chan's role.

Citi analysts said in a research note that Mr. Chan's resignation "came as a surprise to us given it happened during the company's focus shift to profitability and brand enhancement from store network penetration."

Still, the uncertainty related to a management change isn't likely to last long, and the company's handful of competitive edges over rivals, together with easing total compensation, will likely lead to a decent earnings recovery in 2024 financial year, Citi analysts said.

Citi has kept its buy rating and a price target of HK$19.50 on Chow Tai Fook.


Write to Bingyan Wang at bingyan.wang@wsj.com


(END) Dow Jones Newswires

03-06-23 2218ET