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

• Market Cap: $14.01B
• Dividend Yield: 4.43%
• Average Volume (3M): 1.80M
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.60
• Revenue Growth: 10.89%
• EPS Growth: 2.02%
• Country: HK
• 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: 0.06
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 0.20
• Enterprise Value/Ebitda: 0.44
• 1Y Price Target: $33.65
• Price Target Upside: 39.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: HK$29.00 ▲(19.83% 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 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

Luk Fook Holdings demonstrates strong revenue growth and healthy profit margins, indicative of a competitive position. The balance sheet is solid with low leverage, though a decline in return on equity and mixed cash flow performance, particularly the significant drop in free cash flow growth, are concerns.

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: Neutral
• Last Price: 24.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 24.2 is below the 20-day moving average (MA) of 24.71, below the 50-day MA of 24.42, and above the 200-day MA of 21.09, indicating a neutral trend. The MACD of -0.21 indicates Positive momentum. The RSI at 46.85 is Neutral, neither overbought nor oversold. The STOCH value of 35.53 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	77 Outperform	$14.01B	10.90	9.54%	4.43%	10.89%	2.02%
0398	70 Outperform	HK$1.78B	9.81	10.00%	9.67%	-9.00%	-21.55%
0887	69 Neutral	HK$1.71B	6.23	5.10%	4.05%	6.60%	-14.32%
1929	64 Neutral	HK$129.33B	22.06	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$8.11B	6.87	9.13%	4.60%	-10.41%	67.25%
0256	48 Neutral	HK$835.56M	-2.74	-7.92%	―	-18.07%	-1041.89%

Luk Fook Holdings (International) Corporate Events

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.

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.