Analysts have raised their price target for Luk Fook Holdings (International) by approximately HKD 2.41 per share. The change reflects slightly higher profit margin expectations and a marginally lower assumed future price to earnings multiple, partially offset by a softer revenue growth outlook and a modestly higher discount rate.
What's in the News
- Luk Fook Holdings (International) issued earnings guidance for the six months ended 30 September 2025, projecting revenue growth of approximately 20% to 30% year on year, driven by effective product differentiation and stronger sales of fixed price jewellery products (Key Developments).
- The Group expects profit for the same period to rise by approximately 40% to 50% versus last year, supported by improved profit margins from higher gold prices, a richer mix of fixed price jewellery products and operating leverage (Key Developments).
- The Board has scheduled a meeting on 27 November 2025 to approve interim results for the six months ended 30 September 2025 and to consider the payment of an interim dividend, if any (Key Developments).
Valuation Changes
- Fair Value Estimate has risen modestly from HK$28.85 to HK$31.26 per share, reflecting a slightly more optimistic intrinsic valuation.
- Discount Rate has increased slightly from 8.75% to about 8.89%, implying a marginally higher required return and risk premium.
- Revenue Growth has been reduced slightly from around 11.07% to approximately 10.75% per year, indicating a more cautious top line outlook.
- Net Profit Margin has improved modestly from about 10.48% to roughly 10.85%, suggesting better expected profitability and operating efficiency.
- Future P/E has been lowered slightly from 11.37x to about 10.91x, signaling a more conservative valuation multiple applied to forward earnings.
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