Luk Fook Holdings (International) (0590) AI Stock Analysis

• Market Cap: $14.70B
• Dividend Yield: 4.34%
• Average Volume (3M): 1.80M
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.59
• Revenue Growth: -12.95%
• EPS Growth: -37.76%
• Country: HK
• Employees: 6,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 1.13
• Shares Outstanding: 587,107,850
• 10 Day Avg. Volume: 1,457,227
• 30 Day Avg. Volume: 1,803,246
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.67
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 2.53
• Enterprise Value/Ebitda: 7.04
• 1Y Price Target: $33.63
• Price Target Upside: 34.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 77 Outperform
• Price Target: HK$29.00 ▲(16.19% Upside)

Luk Fook Holdings scores well due to strong financial performance, particularly in revenue growth and profit margins, and a solid valuation with an attractive dividend yield. Technical indicators suggest a stable trend. However, concerns over cash flow performance and a decline in return on equity slightly temper the overall score.

Positive Factors

Strong Market Position

Luk Fook's established brand and reputation for quality in the jewelry market provide a durable competitive advantage, supporting long-term revenue stability.

Healthy Profit Margins

Sustained profit margins indicate effective cost management and pricing power, crucial for long-term profitability in the luxury goods sector.

Solid Balance Sheet

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth opportunities.

Negative Factors

Decline in Return on Equity

A declining return on equity suggests reduced efficiency in generating profits from shareholders' equity, potentially impacting investor confidence and future growth.

Mixed Cash Flow Performance

Weak cash flow growth may limit the company's ability to fund operations and investments, posing a risk to long-term financial health and expansion plans.

Revenue Growth Challenges

Negative revenue growth indicates potential market challenges or competitive pressures, which could hinder future expansion and profitability.

Luk Fook Holdings (International) Business Overview & Revenue Model

Company Description

Luk Fook Holdings (International) Limited, an investment holding company, engages in sourcing, designing, wholesaling, trademark licensing, and retailing various gold and platinum jewelry, and gem-set jewelry products. It is also involved in gold bullion trading; wholesaling polished diamonds; property holding; wholesaling and retailing watches; electronic retailing of gold and jewelry products; and the provision of quality examination services, as well as the authentication of gemstones. The company provides software development and internet related services, as well as engages in the brand building and promotion activities. As of March 31, 2022, it operated a total of 2,809 shops including 2,719 Lukfook shops, 84 Goldstyle, 2 Lukfook Joaillerie shops, 3 Heirloom Fortune shops, and 1 Dear Q shop in Hong Kong, Macau, Mainland China, Singapore, Malaysia, Cambodia, the Philippines, the United States, Laos, Canada, and Australia. The company was founded in 1991 and is headquartered in Sha Tin, Hong Kong.

How the Company Makes Money

Luk Fook Holdings generates revenue primarily through the sale of its jewelry products across its extensive retail network. Key revenue streams include direct sales from physical stores, online sales through its e-commerce platform, and wholesale distribution to other retailers. The company benefits from high demand for gold and diamond jewelry, particularly in festive seasons and special occasions. Significant partnerships with suppliers and manufacturers ensure a steady supply of quality materials, allowing Luk Fook to maintain competitive pricing and product offerings. Additionally, the company's branding and marketing efforts enhance customer loyalty and drive repeat purchases, contributing to overall earnings.

Luk Fook Holdings (International) Financial Statement Overview

Summary

Luk Fook Holdings demonstrates strong revenue growth and maintains healthy profit margins, indicating a competitive position in the luxury goods industry. The balance sheet is solid with low leverage, although the decline in return on equity and mixed cash flow performance, especially the significant drop in free cash flow growth, warrant attention.

Income Statement

Luk Fook Holdings has demonstrated strong revenue growth, particularly in the latest fiscal year, with a 39.7% increase. The company maintains healthy profit margins, with a gross profit margin of 33.1% and a net profit margin of 8.2% in the most recent year. However, there has been a slight decline in EBIT and EBITDA margins compared to the previous year, indicating potential cost pressures.

Balance Sheet

The company exhibits a solid balance sheet with a low debt-to-equity ratio of 0.21, indicating prudent financial leverage. The return on equity has decreased to 8.3% from 13.7% in the previous year, suggesting a decline in profitability relative to equity. The equity ratio remains strong, reflecting a stable financial position.

Cash Flow

Cash flow performance has been mixed, with a significant decline in free cash flow growth by 59.1% in the latest year. The operating cash flow to net income ratio is relatively low at 0.21, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio remains robust at 84.6%, suggesting efficient cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.29B	13.34B	15.33B	11.98B	11.74B	8.86B
Gross Profit	3.87B	4.42B	4.17B	3.23B	3.23B	2.63B
EBITDA	1.39B	2.04B	2.64B	1.99B	2.17B	1.83B
Net Income	1.26B	1.10B	1.77B	1.28B	1.39B	1.02B
Balance Sheet
Total Assets	17.09B	17.90B	16.85B	14.93B	16.22B	14.51B
Cash, Cash Equivalents and Short-Term Investments	1.93B	1.91B	2.00B	2.35B	3.49B	3.55B
Total Debt	2.04B	2.81B	2.03B	860.20M	2.31B	1.51B
Total Liabilities	3.93B	4.76B	3.99B	2.71B	4.14B	3.19B
Stockholders Equity	13.22B	13.20B	12.89B	12.22B	12.08B	11.32B
Cash Flow
Free Cash Flow	1.90B	777.34M	986.53M	1.23B	283.45M	2.31B
Operating Cash Flow	2.01B	919.20M	1.66B	1.34B	738.94M	2.45B
Investing Cash Flow	-197.59M	-182.48M	-777.34M	-64.43M	-399.79M	-205.85M
Financing Cash Flow	-2.24B	-805.04M	-1.26B	-2.31B	-460.13M	-1.54B

Luk Fook Holdings (International) Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 24.96
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0590, the sentiment is Neutral. The current price of 24.96 is below the 20-day moving average (MA) of 25.03, below the 50-day MA of 25.32, and above the 200-day MA of 19.16, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 47.73 is Neutral, neither overbought nor oversold. The STOCH value of 52.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HK:0590.

Luk Fook Holdings (International) Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
0590	―	$14.70B	13.71	8.44%	4.34%	-12.95%	-37.76%
0116	―	HK$9.37B	7.90	9.13%	4.09%	-10.41%	67.25%
0887	―	HK$2.03B	7.56	5.10%	3.57%	6.82%	42.74%
0398	―	HK$1.66B	8.22	11.32%	10.35%	-5.19%	-19.96%
1929	―	$161.69B	27.89	22.73%	3.37%	-17.53%	-8.90%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0256	―	$748.52M	62.16	-7.92%	―	-18.07%	-1041.89%

Luk Fook Holdings (International) Corporate Events

Luk Fook Holdings Reports Robust Q2 Sales Growth

Luk Fook Holdings reported a strong retail sales performance in the second quarter of the fiscal year ending March 2026, with overall retail sales value and revenue increasing by 18% and 15% year-on-year, respectively. The company saw significant growth in Mainland China, driven by e-commerce, and entered the Vietnam market for the first time. Despite a reduction in the number of shops, the company achieved double-digit growth in same-store sales across various product categories, indicating a robust market position and potential positive implications for stakeholders.

The most recent analyst rating on (HK:0590) stock is a Buy with a HK$30.80 price target. To see the full list of analyst forecasts on Luk Fook Holdings (International) stock, see the HK:0590 Stock Forecast page.

Luk Fook Holdings Announces Board of Directors and Their Roles

Luk Fook Holdings (International) Limited has announced the composition of its Board of Directors, detailing the roles and functions of each member. The board includes executive, non-executive, and independent non-executive directors, with specific members assigned to the Audit, Remuneration, and Nomination Committees. This announcement provides clarity on the governance structure of the company, which is crucial for stakeholders to understand the leadership dynamics and decision-making processes within the organization.

The most recent analyst rating on (HK:0590) stock is a Buy with a HK$26.38 price target. To see the full list of analyst forecasts on Luk Fook Holdings (International) stock, see the HK:0590 Stock Forecast page.

Luk Fook Holdings Passes All Resolutions at 2025 AGM

Luk Fook Holdings (International) Limited successfully passed all proposed resolutions at its Annual General Meeting held on August 21, 2025. Key resolutions included the approval of financial statements, declaration of a final dividend, re-election of directors, and granting of mandates for share allotment and repurchase. The outcomes of the AGM reflect the company’s stable governance and strategic direction, potentially reinforcing investor confidence and supporting its market position.

The most recent analyst rating on (HK:0590) stock is a Buy with a HK$26.38 price target. To see the full list of analyst forecasts on Luk Fook Holdings (International) stock, see the HK:0590 Stock Forecast page.

Luk Fook Holdings Announces Leadership Re-election and Board Changes

Luk Fook Holdings (International) Limited announced the re-election of Mr. WONG Wai Sheung as Chairman and Chief Executive Officer, alongside changes in its Board of Directors and committee compositions. This decision, made during the company’s annual general meeting, aims to strengthen the company’s business development in Mainland China, leveraging Mr. WONG’s extensive experience and status in the industry to enhance negotiations and market presence.

The most recent analyst rating on (HK:0590) stock is a Buy with a HK$26.38 price target. To see the full list of analyst forecasts on Luk Fook Holdings (International) stock, see the HK:0590 Stock Forecast page.

Luk Fook Holdings Clarifies Director’s Involvement in China South City Winding-Up

Luk Fook Holdings (International) Limited announced an update regarding Mr. HUI Chiu Chung, a Non-executive Director, who was involved with China South City Holdings Limited, a company ordered to wind up by the High Court of Hong Kong. Despite Mr. HUI’s association with China South City, the winding-up order will not impact Luk Fook Holdings’ operations or Mr. HUI’s role within the company.

The most recent analyst rating on (HK:0590) stock is a Buy with a HK$17.42 price target. To see the full list of analyst forecasts on Luk Fook Holdings (International) stock, see the HK:0590 Stock Forecast page.

Luk Fook Holdings Announces 2025 Annual General Meeting

Luk Fook Holdings (International) Limited has announced its Annual General Meeting to be held on August 21, 2025. Key agenda items include reviewing the financial statements, declaring a final dividend, re-electing directors, and re-appointing auditors. Additionally, the company seeks approval to allow directors to issue new shares, with certain limitations, to enhance operational flexibility and support potential growth initiatives.

The most recent analyst rating on (HK:0590) stock is a Buy with a HK$17.42 price target. To see the full list of analyst forecasts on Luk Fook Holdings (International) stock, see the HK:0590 Stock Forecast page.