[ET Net News Agency, 2 November 2017] HSBC Global Research lowered its target price for
Luk Fook Holdings (00590) to HK$26.6 from HK$29, and downgraded its rating from "hold" to
"reduce".
The research house said Luk Fook's shares are up 59% year-to-date, driven by a 35%
upward revision of the PE valuation to 15x and an 18% upward revision in FY2019 EPS.
HSBC expects SSSG to decline to 5% and 13% in Hong Kong/Macau and the PRC in 2H 2018
from 13.5% and 17% in 1H 2018, respectively.
It now forecast an 11.2% net profit CAGR (2018-20) over a 7.1% revenue CAGR in the same
time period after revenue and net profit grow by 13.1% and 10.5%, respectively, in 2018.
(KL)