[ET Net News Agency, 29 June 2020] Citi Research raised its target price for Luk Fook
Holdings (00590) to HK$18.1 from HK$15.8 and maintained its "buy" rating.
The research house said Luk Fook's FY2020 net profit of HK$866m (declined 42%) was
better than Citi's expectation, thanks to higher gross profit margin and lower SG&A/sales.
Despite the earnings decline, the company declared a final dividend of HK$0.50/share
(same as the interim dividend), demonstrating a resilient cash flow thanks to lowered
inventory and leading to a higher payout ratio of 68% in FY2020 (versus 45% in FY2019).
Management expect its renewal rental to decrease by double digits in FY2021 and targets
to maintain its operating profit margin at a low-teen level going forward. Citi revised
its FY2021/22 net profit forecasts by -1%/+5%. (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 
17.800 -0.680 (-3.680%) Others
29/06/2020 17:34
{I-bank focus}Citi ups Luk Fook Holdings (00590) to HK$18.1
| Remark: | Real time quote last updated: 19/04/2024 13:38 |
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