[ET Net News Agency, 19 January 2018] HSBC Global Research lifted its target price for
Luk Fook Holdings (00590) to HK$30.6 from HK$26.6, and upgraded its rating to "hold" from
"reduce".
The research house had believed that Luk Fook's SSSG momentum will flatten out in 2H
2018 and gains on gold inventory in FY17 (ended March) create a high-base on gold product
GPM for FY2018. Now, it thinks the negative catalysts have all materialized.
In a recent trade update, SSSG in 3Q 2018 (October-December) fell by 1% (-4% in PRC and
+1% in HK & Macau) from 17% (+11% in PRC and +18% in HK & Macau) in 2Q 2018. As a result,
Luk Fook lowered the FY2018 SSSG in PRC from double digits to single digits (17% in 1H
2018).
HSBC maintained its top line forecasts unchanged and expects a revenue CAGR over 2018-20
of 7% (2% in HK & Macau and 14% in China). It increased its net profit forecasts by 1-2%
for FY2018-20 from an improving business mix and expect a net profit CAGR of 11%. (KL)
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Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
00590 LUK FOOK HOLD
Nominal 
18.260 -0.140 (-0.761%) Others
19/01/2018 16:02
[I-bank focus]HSBC lifts Luk Fook (00590) to HK$30.6
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