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

• Market Cap: $10.43B
• Dividend Yield: 6.36%
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.58
• Revenue Growth: -4.33%
• EPS Growth: -19.79%
• Country: HK
• Employees: 6,600
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Luxury Goods
• EPS (TTM): 2.14
• Shares Outstanding: 587,107,850
• 10 Day Avg. Volume: 1,098,530
• 30 Day Avg. Volume: 1,492,050
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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: $17.83
• Price Target Upside: 0.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Luk Fook Holdings exhibits strong financial performance with robust revenue and profit growth, supported by solid operational efficiency and a stable balance sheet. The technical analysis indicates strong upward momentum but also highlights overbought conditions, suggesting potential volatility. The stock is attractively valued with a low P/E ratio and high dividend yield, making it appealing for value and income-focused investors. The overall score reflects these strengths while considering technical caution.

Positive Factors

Business Model

Asset-light model should still support medium-term expansion, particularly to multiple lower-tier cities in China.

Expansion and Scalability

Luk Fook’s proven licensing model enhances its scalability and brand visibility in Mainland China, strengthening its operations in HK/Macau and overseas markets.

Growth Prospects

Maintain BUY for Luk Fook’s sound medium-term growth outlook and its merely 0.7x PB valuation.

Negative Factors

Earnings Pressure

High gold prices and slow diamond demand to pressure 1HFY25 earnings.

Jewelry Sales

Retail sales value is down 16% year-over-year, primarily due to a high base and rising gold prices that affected sales volume of gold jewelry.

Market Competition

The company is facing keen competition in its online division in Mainland China.

Luk Fook Holdings (International) Business Overview & Revenue Model

Company Description

Luk Fook Holdings (International) Limited is a leading jewelry retailer and manufacturer based in Hong Kong. The company is renowned for its extensive range of gold jewelry, gem-set jewelry, platinum and karat gold products, and other luxury items. It operates a vast retail network across mainland China, Hong Kong, Macau, and other international markets, catering to a diverse clientele seeking high-quality, luxurious jewelry.

How the Company Makes Money

Luk Fook Holdings generates revenue primarily through the sale of jewelry and related luxury items. Its main revenue streams include retail sales from its extensive network of stores and franchises, wholesale distribution to other retailers, and e-commerce platforms. The company benefits from strategic partnerships with suppliers and designers to produce exclusive jewelry collections, enhancing its product offerings. In addition, Luk Fook Holdings engages in marketing and branding initiatives to attract customers and drive sales, leveraging its reputation as a trusted and prestigious brand in the jewelry industry.

Luk Fook Holdings (International) Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
15.33B	11.98B	11.74B	8.86B	11.23B
	Gross Profit
4.17B	2.86B	2.80B	2.11B	2.73B
	EBIT
2.12B	1.42B	1.52B	956.18M	1.32B
	EBITDA
2.61B	1.98B	2.17B	1.83B	1.80B
	Net Income Common Stockholders
1.77B	1.28B	1.39B	1.02B	866.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.00B	2.35B	3.49B	3.55B	2.71B
	Total Assets
16.85B	14.93B	16.22B	14.51B	13.93B
	Total Debt
2.03B	860.20M	2.31B	1.51B	2.27B
	Net Debt
50.81M	-1.49B	-1.18B	-2.04B	-448.37M
	Total Liabilities
3.99B	2.71B	4.14B	3.19B	3.51B
	Stockholders Equity
12.89B	12.22B	12.08B	11.32B	10.37B
Cash Flow		Free Cash Flow
986.53M	1.25B	358.04M	2.36B	2.90B
	Operating Cash Flow
1.66B	1.36B	813.52M	2.50B	3.06B
	Investing Cash Flow
-777.34M	-97.56M	-487.13M	-269.25M	-390.73M
	Financing Cash Flow
-1.26B	-2.30B	-447.37M	-1.53B	-1.95B

Luk Fook Holdings (International) Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 17.82 is above the 20-day moving average (MA) of 16.19, above the 50-day MA of 15.63, and above the 200-day MA of 14.56, indicating a bullish trend. The MACD of 0.71 indicates Negative momentum. The RSI at 69.89 is Neutral, neither overbought nor oversold. The STOCH value of 90.11 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
1929	80 Outperform	$104.67B	23.37	17.34%	4.81%	0.94%	-32.06%
0590	78 Outperform	$10.43B	8.28	9.79%	6.36%	-4.33%	-19.79%
0700	77 Outperform	$4.50T	21.49	21.80%	0.67%	6.35%	68.85%
1109	71 Outperform	$188.97B	6.81	9.66%	6.59%	9.97%	-19.80%
Sector *	61 Neutral	$6.66B	11.77	3.06%	3.96%	2.60%	-21.54%
1788	53 Neutral	HK$10.18B	29.40	2.31%	2.58%	37.06%	72.51%

Luk Fook Holdings (International) Corporate Events

Luk Fook Holdings Reports Mixed Q4 FY2025 Results with Strategic Shifts

Luk Fook Holdings reported a mixed performance for the fourth quarter of FY2025, with overall retail sales value and revenue remaining flat year-on-year. The company saw a notable turnaround in its fixed price jewelry segment, which grew by 12%, driven by a strategic shift from diamond to fixed price gold products. Despite a challenging environment with high gold prices, the company’s strategy appears to be yielding positive results in specific product categories, although the overall same-store sales dropped by 10%.

Luk Fook Holdings Announces Board of Directors Composition

Luk Fook Holdings (International) Limited has announced the composition of its Board of Directors, detailing the roles and functions of each member. This announcement underscores the company’s commitment to maintaining a robust governance structure, which is crucial for its strategic direction and operational effectiveness. The board comprises executive, non-executive, and independent non-executive directors, reflecting a balanced approach to leadership and oversight.