Jefferies Research cut its target price for Luk Fook Holdings (00590) to HK$37.2 from HK$38.8, and maintained its "buy" rating.
The research house said Luk Fook's 3Q SSSG was 1%/-4% for HK/China, below Jefferies' estimates and Chow Tai Fook Jewellery's (CTF)(01929) 5%/5%. This is due to fewer promotional activities for LF versus CTF as well as a high base last year.
Management lowered FY2018 China SSSG guidance to high-single-digit (in-line with CTF) from previously double-digit. Jefferies revised down its FY2018/19 net profit forecasts to HK$1,154m (+13.5% yoy; net margin 8.1%) and HK$1,227m (+6.4% yoy; net margin 8.3%), respectively.
etnet榮獲HKEX Awards 2023 「最佳表現證券數據供應商」大獎► 了解詳情
