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

Dow Jones Newswires

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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Luk Fook Holdings (International): Record revenue and profit growth driven by strong sales, high margins, and global expansion

Quartr

00590

-3.98%

Revenue grew 25.6% to HKD 6.8B and profit rose 42.5% amid record gross margins and strong sales in both retail and wholesale segments. Double-digit sales growth is expected to continue, with overseas expansion and product innovation as key strategies.

Based on Luk Fook Holdings (International) Limited [590] H1 2026 Audio Transcript — Nov. 28 2025

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This is an AI-generated summary and may contain inaccuracies. Please verify any important information with the original source.

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Luk Fook Holdings (International): Record gross margin and robust sales drive double-digit growth and strong profit gains

Quartr

00590

-3.98%

Revenue grew 25.6% to HKD 6.8B and profit rose 42.5% to HKD 619M, with record gross margin and strong sales in both retail and wholesale segments. Double-digit sales growth is expected to continue, supported by overseas expansion and resilient demand despite gold price and VAT changes.

Based on Luk Fook Holdings (International) Limited [590] H1 2026 Audio Transcript — Nov. 28 2025

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Luk Fook Holdings (International): Double-digit profit and revenue growth, with improved margins and strong network expansion

Quartr

00590

-3.98%

Revenue and profit saw strong double-digit growth in 1H FY2026, with significant gains in both Hong Kong/Macao/Overseas and Mainland markets. Gross margin and operating efficiency improved, while gold price volatility and hedging losses remain key risks.

Original document: Luk Fook Holdings (International) Limited [590] Slides Release — Nov. 28 2025

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Luk Fook Holdings (International): Revenue and profit surged, margins hit record highs, and overseas expansion accelerated

Quartr

00590

-3.98%

Revenue grew 25.6% to HK$6.84B, with net profit up 44.1% to HK$601M and record gross margin of 34.7%. Retail, wholesale, and licensing segments all saw double-digit growth, and overseas expansion continued despite a net decrease in global shop count.

Original document: Luk Fook Holdings (International) Limited [590] Earnings Release — Nov. 28 2025

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Chinese Gold Jewelers May Raise Prices to Pass Through Higher Costs — Market Talk

Dow Jones Newswires

Chinese gold jewelers will likely raise prices to pass through cost pressures after Beijing's new tax policy, Citi analysts say in a research note, noting that China's Finance Ministry ended tax incentives on gold purchases on Saturday. The deduction rate for value-added tax are now lower for gold purchases for non-investment--falling to 6% from 13%. The change could increase gold procurement costs by 7%, the analysts note. If retail prices remain unchanged, Citi estimates 2026 net profits to be set back for gold jewelers: Laopu Gold by 15%, Chow Tai Fook Jewellery Group by 26% and Luk Fook Holdings by 6%. The analysts add that it's unclear if the policy's intentions are to only discourage gold investment by increasing transaction costs or to curb gold jewelry demand as well. (sherry.qin@wsj.com)

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Luk Fook Holdings (International): Revenue and profit declined, but gross margin rose; expansion and efficiency remain key focuses

Quartr

00590

-3.98%

Revenue fell 12.9% to HK$13.3B and net profit dropped 37.8% to HK$1.1B, but gross margin improved to 33.1% due to higher gold prices. The group is focusing on overseas and Mainland expansion, with a three-year strategy targeting shop growth and operational efficiency.

Original document: Luk Fook Holdings (International) Limited [590] Annual Report — Jun. 27 2025

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

Luk Fook Holdings (International): Record revenue and profit growth driven by strong sales, high margins, and global expansion

Luk Fook Holdings (International): Record gross margin and robust sales drive double-digit growth and strong profit gains

Luk Fook Holdings (International): Double-digit profit and revenue growth, with improved margins and strong network expansion

Luk Fook Holdings (International): Revenue and profit surged, margins hit record highs, and overseas expansion accelerated

Chinese Gold Jewelers May Raise Prices to Pass Through Higher Costs — Market Talk

Luk Fook Holdings (International): Revenue and profit declined, but gross margin rose; expansion and efficiency remain key focuses

Risk Disclosure