Luk Fook's FY 2027 Profit Likely to Fall as Margins Normalize -- Market Talk

Dow Jones06-11

0842 GMT - Luk Fook's FY 2027 net profit is likely to decline as its margins normalize, say Citi analysts in a note. While the Hong Kong-listed jewelry company's FY 2026 preliminary results beat expectations, lower gold prices in FY 2027 are likely to weigh on Luk Fook's gross profit margin, they say. Operating leverage is also likely to cause net profit margin to narrow, but its drag is partly offset by lower hedging losses, they add. Still, FY 2026 preliminary results leads Citi to raise their FY 2027 and FY 2028 net profit estimates by 9% and 8%, respectively. Citi cuts its target price to HK$30.20 from HK$32.80 after adjusting cashflow assumptions and maintains a buy rating. Shares closed 4.6% higher at HK$21.44. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

June 11, 2026 04:42 ET (08:42 GMT)

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Still, FY 2026 preliminary results leads Citi to raise their FY 2027 and FY 2028 net profit estimates by 9% and 8%, respectively. Citi cuts its target price to HK$30.20 from HK$32.80 after adjusting cashflow assumptions and maintains a buy rating. Shares closed 4.6% higher at HK$21.44. 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While the Hong Kong-listed jewelry company's FY 2026 preliminary results beat expectations, lower gold prices in FY 2027 are likely to weigh on Luk Fook's gross profit margin, they say. Operating leverage is also likely to cause net profit margin to narrow, but its drag is partly offset by lower hedging losses, they add. Still, FY 2026 preliminary results leads Citi to raise their FY 2027 and FY 2028 net profit estimates by 9% and 8%, respectively. Citi cuts its target price to HK$30.20 from HK$32.80 after adjusting cashflow assumptions and maintains a buy rating. Shares closed 4.6% higher at HK$21.44. (megan.cheah@wsj.com) \n</p>\n<pre style=\"white-space: pre\">\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  June 11, 2026 04:42 ET (08:42 GMT)\n</p>\n<p>\n  Copyright (c) 2026 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK1601","symbol_name":"香港本地股","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2642940036","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2642940036","pubTimestamp":1781167320,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"0842 GMT - Luk Fook's FY 2027 net profit is likely to decline as its margins normalize, say Citi analysts in a note. 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","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK1601":"香港本地股","BK1224":"专卖店","BK1545":"奢侈品股","00590":"六福集团","BK1502":"双十一","BK1602":"香港零售股"},"translate_title":"随着利润率正常化，六福2027财年利润可能会下降——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"00590":0.9},"content_text":"0842 GMT - Luk Fook's FY 2027 net profit is likely to decline as its margins normalize, say Citi analysts in a note. While the Hong Kong-listed jewelry company's FY 2026 preliminary results beat expectations, lower gold prices in FY 2027 are likely to weigh on Luk Fook's gross profit margin, they say. Operating leverage is also likely to cause net profit margin to narrow, but its drag is partly offset by lower hedging losses, they add. Still, FY 2026 preliminary results leads Citi to raise their FY 2027 and FY 2028 net profit estimates by 9% and 8%, respectively. Citi cuts its target price to HK$30.20 from HK$32.80 after adjusting cashflow assumptions and maintains a buy rating. Shares closed 4.6% higher at HK$21.44. 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