Luk Fook Likely to Sustain Margins Into Next Year -- Market Talk

Dow Jones12-04 15:22

0722 GMT - Jewelry maker Luk Fook Holdings will likely be able to sustain its margins into next year through recent product price increases in China, says DBS Group Research analyst Mavis Hui in a note. The higher margins could also be supported by the company's move toward higher-margin fixed-price products, she says. The analyst expects Luk Fook's product designs, scalable China wholesale and licensing platforms and solid cash generation to provide a strong foundation for sustainable growth and shareholder returns. She lifts her 2026 and 2027 earnings projections by 9% and 8%, respectively. DBS raises its target price on the stock to HK$31.31 from HK$28.54 and maintains a buy rating. Shares rise 0.2% to HK$26.16. (megan.cheah@wsj.com)

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December 04, 2025 02:22 ET (07:22 GMT)

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