Haitong International Initiates Coverage on LUK FOOK HOLD (00590) with "Outperform" Rating, Sets Target Price at HK$40.35

Stock News12-02

Haitong International initiated coverage on LUK FOOK HOLD (00590) with an "Outperform" rating. The report forecasts net profits of RMB 1.578 billion, RMB 1.8 billion, and RMB 1.977 billion for fiscal years 2026 to 2028, respectively. Based on peer valuations, the firm assigned a 15x P/E multiple for FY2026, deriving a target price of HK$40.35.

The report highlights that LUK FOOK HOLD recorded H1 FY2026 revenue of RMB 6.843 billion, up 25.6% YoY, with gross profit rising 33.2% YoY to RMB 2.373 billion. Gross margin expanded by 2 percentage points to 34.7%. Operating profit surged 45.4% YoY to RMB 780 million, with operating margin improving by 1.6 percentage points to 11.4%. Net profit grew 42.5% YoY to RMB 619 million, while net margin rose 1.1 percentage points to 8.8%. The interim dividend was HK$0.55 per share, representing a payout ratio of 52%.

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