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Luk Fook Holdings (International)
(0590)
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Rating:69Neutral
Price Target:
HK$22.00
▼(-7.80% Downside)
Action:Reiterated
Date:08/21/26
The score is anchored by improved revenue and margin performance and a still-manageable balance sheet, but is held back materially by the sharp FY2026 reversal to negative operating and free cash flow. Technicals are supportive with the price above key moving averages and positive MACD, while valuation is a clear positive due to the low P/E and solid dividend yield.
Positive Factors
Revenue and margin expansion
The latest year showed strong operating improvement, with faster revenue growth accompanied by materially higher gross and EBIT margins. This combination indicates improved operating leverage and stronger earnings capacity, although sustaining the gains will depend on continued demand and product mix.
Negative Factors
Sharp deterioration in cash generation
The latest reversal from several years of positive free cash flow weakens confidence in earnings conversion and raises concerns about working-capital needs or higher cash outlays. If sustained, negative cash generation could reduce financial flexibility and limit internally funded expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and margin expansion
The latest year showed strong operating improvement, with faster revenue growth accompanied by materially higher gross and EBIT margins. This combination indicates improved operating leverage and stronger earnings capacity, although sustaining the gains will depend on continued demand and product mix.
Read all positive factors
Luk Fook Holdings (International) (0590) vs. iShares MSCI Hong Kong ETF (EWH)
Market Cap
HK$11.84B
Dividend Yield7.79%
Average Volume (3M)1.11M
Price to Earnings (P/E)5.8
Beta (1Y)0.70
Revenue Growth28.96%
EPS Growth86.00%
CountryHK
Employees6,700
SectorConsumer Cyclical
Sector Strength84
IndustryLuxury Goods
Share Statistics
EPS (TTM)3.48
Shares Outstanding587,107,850
10 Day Avg. Volume1,319,352
30 Day Avg. Volume1,109,152
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)0.91
Price to Sales (P/S)0.79
P/FCF Ratio-173.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
HK$30.73Price Target Upside28.77% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)3.57
Revenue Forecast (FY)HK$20.15B
Luk Fook Holdings (International) Business Overview & Revenue Model
Company Description
Luk Fook Holdings (International) Limited functions as an investment holding company, predominantly focused on the jewelry sector. Its operations encompass the complete cycle from sourcing and designing to the wholesale, trademark licensing, and d...
How the Company Makes Money
The company primarily makes money by selling jewellery and related products to consumers and by earning income tied to its franchised store network. Key revenue streams include: (1) Retail sales from self-operated stores: Luk Fook generates revenu...
Luk Fook Holdings (International) Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
72
Positive
Cash Flow
29
Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 17.21B | 13.34B | 15.33B | 11.98B | 11.74B |
| Gross Profit | 6.31B | 4.42B | 4.17B | 3.23B | 3.23B |
| EBITDA | 3.95B | 2.04B | 2.64B | 1.99B | 2.17B |
| Net Income | 2.05B | 1.10B | 1.77B | 1.28B | 1.39B |
Balance Sheet | |||||
| Total Assets | 22.11B | 17.90B | 16.85B | 14.93B | 16.22B |
| Cash, Cash Equivalents and Short-Term Investments | 2.36B | 1.91B | 2.00B | 2.35B | 3.49B |
| Total Debt | 4.75B | 2.81B | 2.03B | 860.20M | 2.31B |
| Total Liabilities | 7.18B | 4.76B | 3.99B | 2.71B | 4.14B |
| Stockholders Equity | 15.01B | 13.20B | 12.89B | 12.22B | 12.08B |
Cash Flow | |||||
| Free Cash Flow | -78.46M | 777.34M | 986.53M | 1.23B | 283.45M |
| Operating Cash Flow | 23.24M | 919.20M | 1.66B | 1.34B | 738.94M |
| Investing Cash Flow | -5.84M | -182.48M | -777.34M | -64.43M | -399.79M |
| Financing Cash Flow | 401.30M | -805.04M | -1.26B | -2.31B | -460.13M |
Luk Fook Holdings (International) Technical Analysis
Negative
23.86
Price Trends
21.76
Negative
22.08
Negative
23.51
Negative
Market Momentum
-0.39
Positive
34.90
Neutral
9.36
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:0590, the sentiment is Negative. The current price of 23.86 is above the 20-day moving average (MA) of 21.33, above the 50-day MA of 21.76, and above the 200-day MA of 23.51, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 34.90 is Neutral, neither overbought nor oversold. The STOCH value of 9.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HK:0590.
Luk Fook Holdings (International) Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | HK$572.86M | 5.63 | 11.81% | 3.97% | 15.37% | 15.35% | |
76 Outperform | HK$8.28B | 2.85 | 19.31% | 8.69% | 16.22% | 151.59% | |
75 Outperform | HK$1.81B | 3.16 | 9.96% | 8.16% | 8.83% | 109.28% | |
69 Neutral | HK$11.84B | 5.79 | 14.28% | 7.79% | 28.96% | 86.00% | |
65 Neutral | HK$4.53B | 5.26 | 17.29% | 10.01% | ― | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | HK$108.63B | 11.97 | 33.61% | 6.09% | 5.29% | 53.87% |
* Consumer Cyclical Sector Average
HK:0590
Luk Fook Holdings (International)
20.16
-1.60
-7.35%
HK:0116
Chow Sang Sang Holdings International
12.32
0.22
1.79%
HK:1929
Chow Tai Fook Jewellery Group
11.01
-2.15
-16.35%
HK:0887
Emperor Watch & Jewellery
0.25
>-0.01
-2.34%
HK:0280
King Fook Holdings Limited
0.63
0.18
40.94%
HK:6168
Zhou Liu Fu Jewellery Co., Ltd. Class H
10.29
-30.92
-75.03%
Luk Fook Holdings (International) Corporate Events
Luk Fook Posts Solid Q2 Growth as Investment Gold and Global Expansion Drive Sales
Oct 22, 2026
Luk Fook reported steady growth in the second quarter of its financial year ending 31 March 2027, despite a high comparison base, with overall retail sales value up 8%, retailing revenue up 23% and same-store sales rising 12% year-on-year. The sal...
Luk Fook Shareholders Back All Resolutions at 2026 AGM
Aug 20, 2026
Shareholders of Luk Fook Holdings (International) Limited approved all ordinary resolutions at the annual general meeting held in Hong Kong on 20 August 2026, with no treasury shares in issue and all eligible shares entitled to vote. The meeting e...
Luk Fook Re-Elects Founder as Chairman and CEO, Citing Mainland Market Focus
Aug 20, 2026
Luk Fook Holdings (International) announced that founder Mr. Wong Wai Sheung has been re-elected as Chairman and will continue to serve concurrently as Chief Executive Officer, following the company’s annual general meeting and subsequent bo...
Luk Fook Outlines Board Composition and Governance Roles
Aug 20, 2026
Luk Fook Holdings (International) Limited has disclosed the composition of its board of directors, detailing executive, non-executive and independent non-executive members along with their roles in key governance committees. The announcement highl...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.