LUK FOOK HOLD (00590) surged over 5% during the afternoon session. At the time of writing, the stock was up 4.91%, trading at HK$26.94, with a turnover of HK$23.20 million. The price increase in domestic gold jewelry, driven by the rising international gold price, serves as a key market catalyst. On January 14th, the domestic pure gold jewelry prices announced by several major gold jewelry brands continued their upward trend, surpassing the threshold of 1,435 yuan per gram. By January 15th, price adjustments among various brands showed divergence, with the higher-end prices already adjusted up to 1,439 yuan per gram. Citi previously issued a research report initiating a 30-day positive catalyst watch on LUK FOOK HOLD, anticipating the company will announce sequentially enhanced operational data for the third quarter of fiscal year 2026 in January. The bank forecasts that the robust sales momentum demonstrated in October and November will persist through December. It also believes that the strong sales growth following the value-added tax policy adjustment will positively impact the gross profit margin for the second half of fiscal 2026 and the first half of fiscal 2027.
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