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

• Market Cap: HK$19.32B
• Dividend Yield: 4.43%
• Average Volume (3M): 1.80M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 0.62
• Revenue Growth: 10.89%
• EPS Growth: 2.02%
• Country: US
• Employees: 6,600
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Luxury Goods
• EPS (TTM): 1.05
• Shares Outstanding: 587,107,850
• 10 Day Avg. Volume: 1,457,227
• 30 Day Avg. Volume: 1,803,246
• PEG Ratio: -0.22
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.67
• P/FCF Ratio: 11.56
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: HK$34.54
• Price Target Upside: 5.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: HK$36.00 ▲(9.42% Upside)

The score is driven primarily by strong financial performance (notably revenue growth and a low-leverage balance sheet), tempered by weaker cash flow trends and lower ROE. Technicals are a secondary drag due to very overbought readings despite strong momentum. Valuation is supportive with a moderate P/E and a solid dividend yield.

Positive Factors

Strong revenue growth

Sustained 39.7% revenue growth indicates durable demand and successful retail expansion across Hong Kong, Macau and Mainland China. Over 2–6 months this supports scale advantages, higher bargaining power with suppliers and the ability to fund merchandising and digital channel investments.

Healthy profit margins

Gross margin at 33.1% and net margin at 8.2% signal structural pricing power in jewelry retail and product mix resilience. These margins provide buffer against commodity swings and support reinvestment in stores and marketing, sustaining returns across market cycles.

Low leverage balance sheet

Debt-to-equity of 0.21 reflects conservative leverage, giving financial flexibility to pursue store growth, inventory financing, and endure commodity volatility. A strong equity base lowers refinancing risk and supports dividends or strategic M&A without stressing cash flow.

Negative Factors

Falling return on equity

A decline in ROE from 13.7% to 8.3% suggests reduced capital efficiency and weaker shareholder returns. If persistent, this can signal that recent investments or margin mix are not converting into proportional equity returns, pressuring long-term investor appeal.

Weakened cash conversion

A 59.1% decline in free cash flow growth and OCF-to-net-income of 0.21 point to challenges converting profits into cash. Over several quarters this can constrain capex, inventory funding, dividends and reduce resilience to gold price swings despite reported earnings.

Margin pressure on operating profits

Eroding EBIT/EBITDA margins imply rising costs or less favorable sales mix. Persisting margin compression would hurt operating leverage, limit reinvestment capacity, and make earnings more sensitive to commodity and retail traffic shifts over the medium term.

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 generates revenue primarily through the sale of its gold and jewelry products in its retail stores. The company's revenue model is driven by direct sales to consumers, with a focus on both high-margin luxury items and more affordable jewelry options to attract a broad customer base. Key revenue streams include retail sales, which contribute significantly to overall earnings, as well as online sales through its e-commerce platform. Additionally, the company benefits from fluctuations in gold prices, which can impact profit margins. Strategic partnerships with suppliers and collaborations with designers also enhance product offerings and can contribute to increased sales. Seasonal promotions and marketing campaigns further drive foot traffic to stores, enhancing revenue potential.

Luk Fook Holdings (International) Financial Statement Overview

Summary

Strong income statement with 39.7% revenue growth and healthy margins (33.1% gross, 8.2% net), supported by a solid, low-leverage balance sheet (debt-to-equity 0.21). Offsetting this, profitability efficiency has weakened (ROE down to 8.3%) and cash flow quality is mixed with a 59.1% drop in free cash flow growth and low operating cash flow to net income (0.21).

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	13.34B	13.34B	15.33B	11.98B	11.74B	8.86B
Gross Profit	4.42B	4.42B	4.17B	3.23B	3.23B	2.63B
EBITDA	2.04B	2.04B	2.64B	1.96B	2.14B	1.81B
Net Income	1.10B	1.10B	1.77B	1.28B	1.39B	1.02B
Balance Sheet
Total Assets	17.90B	17.90B	16.85B	14.93B	16.22B	14.51B
Cash, Cash Equivalents and Short-Term Investments	1.91B	1.91B	2.00B	2.35B	3.49B	3.55B
Total Debt	2.81B	2.81B	2.03B	860.20M	2.31B	1.51B
Total Liabilities	4.76B	4.76B	3.99B	2.71B	4.14B	3.19B
Stockholders Equity	13.20B	13.20B	12.89B	12.22B	12.08B	11.32B
Cash Flow
Free Cash Flow	777.34M	777.34M	986.53M	1.23B	283.45M	2.31B
Operating Cash Flow	919.20M	919.20M	1.66B	1.34B	738.94M	2.45B
Investing Cash Flow	-182.48M	-182.48M	-777.34M	-64.43M	-399.79M	-205.85M
Financing Cash Flow	-805.04M	-805.04M	-1.26B	-2.31B	-460.13M	-1.54B

Luk Fook Holdings (International) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0590, the sentiment is Positive. The current price of 32.9 is above the 20-day moving average (MA) of 27.18, above the 50-day MA of 25.71, and above the 200-day MA of 22.12, indicating a bullish trend. The MACD of 2.11 indicates Negative momentum. The RSI at 88.03 is Negative, neither overbought nor oversold. The STOCH value of 92.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
0887	77 Outperform	HK$1.70B	6.21	5.10%	4.05%	6.60%	-14.32%
0590	73 Outperform	HK$19.32B	15.04	9.54%	4.43%	10.89%	2.02%
0398	70 Outperform	HK$1.65B	9.08	10.00%	9.67%	-9.00%	-21.55%
1929	64 Neutral	HK$145.22B	24.76	23.74%	4.21%	-9.49%	32.56%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
0116	61 Neutral	HK$10.11B	8.57	9.13%	4.60%	-10.41%	67.25%
0256	48 Neutral	HK$761.58M	-2.53	-7.92%	―	-18.07%	-1041.89%

Luk Fook Holdings (International) Corporate Events

Luk Fook Posts Strong Q3 Retail Recovery as Same-Store Sales Jump 15%

Luk Fook Holdings reported a strong rebound in retail performance for the third quarter of its financial year ending 31 March 2026, with overall retail sales value up 26% year-on-year and retailing revenue rising 17%, significantly outperforming the previous two quarters despite a relatively high comparison base. Same-store sales improved to +15%, driven by robust demand across Hong Kong, Macao, overseas and Mainland China markets, while the mix of fixed price gold products increased, and fixed price jewellery same-store sales rose 17%, supported by a 32% gain in fixed price gold and stabilization in 18K gold diamond sales; the group also noted improved performance in gold products despite sharply higher international gold prices and continued to rationalize its network with a net reduction of 40 shops in the quarter, while adding 17 new overseas shops in the first nine months of the financial year.

The most recent analyst rating on (HK:0590) stock is a Buy with a HK$35.20 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 Reports Robust Interim Financial Results and Expands Overseas

Luk Fook Holdings (International) reported a significant financial performance for the six months ending September 30, 2025, with a 25.6% increase in revenue to HK$6.8 billion, driven by effective product differentiation and sales strategies. The company’s gross profit margin reached a record high of 34.7% due to a favorable sales mix and rising gold prices, while operating profit surged by 45.4% to HK$0.78 billion. The company also saw a 44.1% increase in profit for the period, with a proposed interim dividend of HK$0.55 per share. The company continued its steady overseas expansion, adding eight new shops and entering the Vietnam market, with strong double-digit growth in same-store sales across all markets.

The most recent analyst rating on (HK:0590) stock is a Buy with a HK$28.54 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 Declares Interim Dividend for 2025

Luk Fook Holdings (International) Limited has announced an interim dividend of HKD 0.55 per share for the six months ending September 30, 2025. The dividend will be paid on December 24, 2025, with the record date set for December 12, 2025. This announcement reflects the company’s ongoing commitment to delivering shareholder value and may positively impact investor sentiment.

The most recent analyst rating on (HK:0590) stock is a Buy with a HK$28.54 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 Forms Remuneration Committee to Strengthen Governance

Luk Fook Holdings (International) Limited has established a Remuneration Committee to oversee and determine the company’s remuneration policies. The committee, which is composed primarily of Independent Non-executive Directors, is tasked with ensuring fair and competitive compensation practices within the organization, enhancing governance and aligning with industry standards.

The most recent analyst rating on (HK:0590) stock is a Buy with a HK$28.54 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 Projects Significant Revenue and Profit Growth

Luk Fook Holdings (International) Limited announced a positive profit alert, expecting a revenue increase of 20% to 30% and a profit increase of 40% to 50% for the six months ending September 2025. This growth is attributed to effective product differentiation, sales strategies, and a favorable rise in gold prices, enhancing profit margins and sales of fixed price jewelry products.

The most recent analyst rating on (HK:0590) stock is a Buy with a HK$29.00 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 Upcoming Board Meeting for Interim Results

Luk Fook Holdings (International) Limited has announced a board meeting scheduled for November 27, 2025, to approve its interim results for the six months ending September 30, 2025, and to consider the payment of an interim dividend. This meeting is a routine part of the company’s operations, potentially impacting its financial performance and shareholder returns, while also reflecting its ongoing commitment to transparency and stakeholder engagement.

The most recent analyst rating on (HK:0590) stock is a Buy with a HK$29.00 price target. To see the full list of analyst forecasts on Luk Fook Holdings (International) stock, see the HK:0590 Stock Forecast page.