Industrial Securities Initiates Coverage on LUK FOOK HOLD (00590) with "Overweight" Rating as China and Macau Markets Rebound Rapidly

Stock News02-02

Industrial Securities Co.,Ltd. has issued a research report initiating coverage on LUK FOOK HOLD (00590) with an "Overweight" rating. The firm forecasts net profits attributable to shareholders for FY26, FY27, and FY28 to be HKD 1.572 billion, HKD 1.728 billion, and HKD 1.891 billion, representing year-on-year increases of +42.9%, +9.9%, and +9.4%, respectively. Based on the closing price on January 29, the stock's price-to-earnings ratio relative to the forecasted FY2027 EPS is 11x, with a potential dividend yield of 5.2%, indicating attractive valuation.

The report states that the long-term upward trend in gold prices, coupled with the peak consumption season around dual holidays, is expected to continue boosting gold and jewelry consumption. The performance in the China, Hong Kong, and Macau markets is showing superior growth in turnover. LUK FOOK HOLD, with its high proportion of business in China, Hong Kong, Macau & overseas, a significant share of direct retail operations, and a low gold hedging ratio, is well-positioned to fully capitalize on the upside elasticity provided by rising gold prices.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment