[ET Net News Agency, 29 March 2018] HSBC Global Research lifted its target price for
Luk Fook Holdings (00590) to HK$33.9 from HK$30.6, and upgraded its rating to "buy" from
"hold".
The research house said Hong Kong jewellery retail sales contributed 66% and 48% of Luk
Fook's revenue and operating profit, respectively in 1H 2018. For every 1.0% increase in
SSSG in Hong Kong/Macau, the company's net profit goes up by 1.3%.
In FY2019, HSBC expects Luk Fook's revenue from Hong Kong/Macau to grow 5.9%, up from
2.2% previously; consequently its rental cost ratio in Hong Kong should drop to 6.7% in
FY2019 from 7.4% in FY2018, resulting in its operating profit margin in Hong Kong
expanding to 8% (from 7.6%).
On the back of the increase in growth in Hong Kong, HSBc raised its FY2019 EPS forecast
for Luk Fook by 9.2%. Over FY2018-20, HSBC forecast Luk Fook to deliver a net profit CAGR
of 16.7% over a CAGR of 8.2% in sales. (KL)
|
|
|
|
|
|
|
|
|
|
Super Quote | Detail Quote | Interactive Chart | Transaction | Related News | Related Securities | Company Information | Dividend Records | Short Sell
00590 LUK FOOK HOLD
Nominal 
18.260 0.000 (0.000%) Others
29/03/2018 17:35
[I-bank focus]HSBC lifts Luk Fook (00590) to "buy" & HK$33.9
| Remark: | Real time quote last updated: 24/04/2024 07:57 |
| Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service |