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Luk Fook Holdings (International)

SEHK:590
Snowflake Description

Adequate balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
590
SEHK
HK$16B
Market Cap
  1. Home
  2. HK
  3. Retail
Company description

Luk Fook Holdings (International) Limited, an investment holding company, engages in sourcing, designing, wholesaling, trademark licensing, and retailing various gold and platinum jewelry, and gem-set jewelry. The last earnings update was 82 days ago. More info.


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590 Share Price and Events
7 Day Returns
2.5%
SEHK:590
1.7%
HK Specialty Retail
2.7%
HK Market
1 Year Returns
-3.4%
SEHK:590
-17.8%
HK Specialty Retail
-9.6%
HK Market
590 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Luk Fook Holdings (International) (590) 2.5% 15.3% 25.7% -3.4% 53% 4%
HK Specialty Retail 1.7% 7.3% 12.9% -17.8% 18.7% -28.7%
HK Market 2.7% 5.6% 13.2% -9.6% 29.1% 20.9%
1 Year Return vs Industry and Market
  • 590 outperformed the Specialty Retail industry which returned -17.8% over the past year.
  • 590 outperformed the Market in Hong Kong which returned -9.6% over the past year.
Price Volatility
590
Industry
5yr Volatility vs Market

590 Value

 Is Luk Fook Holdings (International) undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Luk Fook Holdings (International) to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Luk Fook Holdings (International).

SEHK:590 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:590
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6.7%
Specialty Retail Unlevered Beta Simply Wall St/ S&P Global 0.86
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.856 (1 + (1- 25%) (11.1%))
0.951
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.95
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (0.951 * 6.65%)
8.33%

Discounted Cash Flow Calculation for SEHK:590 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Luk Fook Holdings (International) is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:590 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (HKD, Millions) Source Present Value
Discounted (@ 8.33%)
2019 444.00 Analyst x2 409.87
2020 936.00 Analyst x3 797.61
2021 1,016.00 Analyst x2 799.22
2022 1,080.44 Est @ 6.34% 784.57
2023 1,134.90 Est @ 5.04% 760.76
2024 1,181.76 Est @ 4.13% 731.27
2025 1,223.02 Est @ 3.49% 698.62
2026 1,260.26 Est @ 3.04% 664.55
2027 1,294.70 Est @ 2.73% 630.22
2028 1,327.24 Est @ 2.51% 596.39
Present value of next 10 years cash flows HK$6,873.09
SEHK:590 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= HK$1,327.24 × (1 + 2%) ÷ (8.33% – 2%)
HK$21,403.48
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$21,403.48 ÷ (1 + 8.33%)10
HK$9,617.60
SEHK:590 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$6,873.09 + HK$9,617.60
HK$16,490.70
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$16,490.70 / 587.11
HK$28.09
SEHK:590 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$28.09
Current discount Discount to share price of HK$27.15
= -1 x (HK$27.15 - HK$28.09) / HK$28.09
3.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Luk Fook Holdings (International) is available for.
Intrinsic value
3%
Share price is HK$27.15 vs Future cash flow value of HK$28.09
Current Discount Checks
For Luk Fook Holdings (International) to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Luk Fook Holdings (International)'s share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Luk Fook Holdings (International)'s share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Luk Fook Holdings (International)'s earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Luk Fook Holdings (International)'s earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:590 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in HKD HK$2.58
SEHK:590 Share Price ** SEHK (2019-03-19) in HKD HK$27.15
Hong Kong Specialty Retail Industry PE Ratio Median Figure of 38 Publicly-Listed Specialty Retail Companies 9.3x
Hong Kong Market PE Ratio Median Figure of 1,494 Publicly-Listed Companies 10.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Luk Fook Holdings (International).

SEHK:590 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:590 Share Price ÷ EPS (both in HKD)

= 27.15 ÷ 2.58

10.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Luk Fook Holdings (International) is overvalued based on earnings compared to the HK Specialty Retail industry average.
  • Luk Fook Holdings (International) is good value based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Luk Fook Holdings (International)'s expected growth come at a high price?
Raw Data
SEHK:590 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.53x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
4.1%per year
Hong Kong Specialty Retail Industry PEG Ratio Median Figure of 15 Publicly-Listed Specialty Retail Companies 0.62x
Hong Kong Market PEG Ratio Median Figure of 468 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

SEHK:590 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.53x ÷ 4.1%

2.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Luk Fook Holdings (International) is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Luk Fook Holdings (International)'s assets?
Raw Data
SEHK:590 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in HKD HK$16.86
SEHK:590 Share Price * SEHK (2019-03-19) in HKD HK$27.15
Hong Kong Specialty Retail Industry PB Ratio Median Figure of 59 Publicly-Listed Specialty Retail Companies 0.82x
Hong Kong Market PB Ratio Median Figure of 2,137 Publicly-Listed Companies 0.99x
SEHK:590 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:590 Share Price ÷ Book Value per Share (both in HKD)

= 27.15 ÷ 16.86

1.61x

* Primary Listing of Luk Fook Holdings (International).

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Luk Fook Holdings (International) is overvalued based on assets compared to the HK Specialty Retail industry average.
X
Value checks
We assess Luk Fook Holdings (International)'s value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Specialty Retail industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Specialty Retail industry average (and greater than 0)? (1 check)
  5. Luk Fook Holdings (International) has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

590 Future Performance

 How is Luk Fook Holdings (International) expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Luk Fook Holdings (International) expected to grow at an attractive rate?
  • Luk Fook Holdings (International)'s earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Luk Fook Holdings (International)'s earnings growth is positive but not above the Hong Kong market average.
  • Luk Fook Holdings (International)'s revenue growth is positive but not above the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:590 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:590 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 4.1%
SEHK:590 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 4.3%
Hong Kong Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 17.9%
Hong Kong Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 7.5%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 12%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:590 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in HKD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:590 Future Estimates Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-03-31
2022-03-31
2021-03-31 17,683 1,360 1,602 8
2020-03-31 16,977 1,335 1,534 11
2019-03-31 16,198 1,508 1,460 11
SEHK:590 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2018-09-30 16,154 -358 1,514
2018-06-30 15,366 56 1,442
2018-03-31 14,578 470 1,369
2017-12-31 14,100 644 1,239
2017-09-30 13,622 817 1,108
2017-06-30 13,214 769 1,063
2017-03-31 12,807 720 1,017
2016-12-31 12,671 924 971
2016-09-30 12,536 1,129 924
2016-06-30 13,283 1,596 941
2016-03-31 14,031 2,063 959
2015-12-31 14,688 1,580 1,116

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Luk Fook Holdings (International)'s earnings are expected to grow by 4.1% yearly, however this is not considered high growth (20% yearly).
  • Luk Fook Holdings (International)'s revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:590 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from Luk Fook Holdings (International) Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:590 Future Estimates Data
Date (Data in HKD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-03-31
2022-03-31
2021-03-31 2.75 3.00 2.58 6.00
2020-03-31 2.63 2.74 2.50 9.00
2019-03-31 2.51 2.69 2.40 9.00
SEHK:590 Past Financials Data
Date (Data in HKD Millions) EPS *
2018-09-30 2.58
2018-06-30 2.46
2018-03-31 2.33
2017-12-31 2.11
2017-09-30 1.89
2017-06-30 1.81
2017-03-31 1.73
2016-12-31 1.65
2016-09-30 1.57
2016-06-30 1.60
2016-03-31 1.63
2015-12-31 1.90

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Luk Fook Holdings (International) is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Luk Fook Holdings (International)'s future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Luk Fook Holdings (International) has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

590 Past Performance

  How has Luk Fook Holdings (International) performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Luk Fook Holdings (International)'s growth in the last year to its industry (Specialty Retail).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Luk Fook Holdings (International)'s year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Luk Fook Holdings (International)'s 1-year earnings growth exceeds its 5-year average (36.7% vs -8.9%)
  • Luk Fook Holdings (International)'s earnings growth has exceeded the HK Specialty Retail industry average in the past year (36.7% vs 32.4%).
Earnings and Revenue History
Luk Fook Holdings (International)'s revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Luk Fook Holdings (International) Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:590 Past Revenue, Cash Flow and Net Income Data
Date (Data in HKD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 16,154.41 1,514.45 2,451.16
2018-06-30 15,366.41 1,441.92 2,384.34
2018-03-31 14,578.41 1,369.39 2,317.52
2017-12-31 14,100.01 1,238.78 2,262.82
2017-09-30 13,621.61 1,108.17 2,208.13
2017-06-30 13,214.44 1,062.51 2,178.84
2017-03-31 12,807.28 1,016.84 2,149.56
2016-12-31 12,671.40 970.57 2,136.91
2016-09-30 12,535.52 924.29 2,124.26
2016-06-30 13,283.41 941.49 2,127.42
2016-03-31 14,031.30 958.69 2,130.58
2015-12-31 14,688.28 1,116.14 2,128.97
2015-09-30 15,345.26 1,273.60 2,127.35
2015-06-30 15,633.98 1,444.20 2,105.83
2015-03-31 15,922.71 1,614.81 2,084.31
2014-12-31 16,306.92 1,659.67 2,087.99
2014-09-30 16,691.14 1,704.53 2,091.67
2014-06-30 17,953.03 1,784.73 2,082.95
2014-03-31 19,214.93 1,864.93 2,074.23
2013-12-31 18,385.99 1,757.38 1,926.33
2013-09-30 17,557.04 1,649.83 1,778.44
2013-06-30 15,484.37 1,446.39 1,613.39
2013-03-31 13,411.69 1,242.95 1,448.35
2012-12-31 12,864.25 1,207.71 1,385.10
2012-09-30 12,316.80 1,172.48 1,321.85
2012-06-30 12,112.12 1,253.21 1,267.16
2012-03-31 11,907.44 1,333.94 1,212.47

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Luk Fook Holdings (International) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Luk Fook Holdings (International) used its assets more efficiently than the HK Specialty Retail industry average last year based on Return on Assets.
  • Luk Fook Holdings (International)'s use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Luk Fook Holdings (International)'s performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Specialty Retail industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Luk Fook Holdings (International) has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

590 Health

 How is Luk Fook Holdings (International)'s financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Luk Fook Holdings (International)'s finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Luk Fook Holdings (International) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Luk Fook Holdings (International)'s cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Luk Fook Holdings (International)'s finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 6.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Luk Fook Holdings (International) Company Filings, last reported 5 months ago.

SEHK:590 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 9,944.49 1,762.49 1,640.26
2018-06-30 9,944.49 1,762.49 1,640.26
2018-03-31 10,079.74 726.28 2,097.87
2017-12-31 10,079.74 726.28 2,097.87
2017-09-30 9,329.32 0.00 1,403.61
2017-06-30 9,329.32 0.00 1,403.61
2017-03-31 8,979.94 437.15 1,861.77
2016-12-31 8,979.94 437.15 1,861.77
2016-09-30 8,795.34 336.20 2,147.58
2016-06-30 8,795.34 336.20 2,147.58
2016-03-31 8,768.92 710.69 2,432.19
2015-12-31 8,768.92 710.69 2,432.19
2015-09-30 8,673.95 768.69 2,190.01
2015-06-30 8,673.95 768.69 2,190.01
2015-03-31 8,600.51 1,713.44 2,090.13
2014-12-31 8,600.51 1,713.44 2,090.13
2014-09-30 8,145.04 1,317.13 2,530.22
2014-06-30 8,145.04 1,317.13 2,530.22
2014-03-31 7,699.16 568.00 1,804.94
2013-12-31 7,699.16 568.00 1,804.94
2013-09-30 7,190.99 0.00 1,703.46
2013-06-30 7,190.99 0.00 1,703.46
2013-03-31 6,477.59 0.00 1,186.81
2012-12-31 6,477.59 0.00 1,186.81
2012-09-30 5,954.49 0.00 1,197.71
2012-06-30 5,954.49 0.00 1,197.71
2012-03-31 5,644.28 0.00 1,538.06
  • Luk Fook Holdings (International)'s level of debt (17.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.1% vs 17.7% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Luk Fook Holdings (International) earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Luk Fook Holdings (International)'s financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Luk Fook Holdings (International) has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

590 Dividends

 What is Luk Fook Holdings (International)'s current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.05%
Current annual income from Luk Fook Holdings (International) dividends. Estimated to be 3.92% next year.
If you bought HK$2,000 of Luk Fook Holdings (International) shares you are expected to receive HK$81 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Luk Fook Holdings (International)'s pays a higher dividend yield than the bottom 25% of dividend payers in Hong Kong (1.96%).
  • Luk Fook Holdings (International)'s dividend is below the markets top 25% of dividend payers in Hong Kong (5.27%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:590 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
Hong Kong Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 31 Stocks 4.8%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 922 Stocks 3.4%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.1%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.3%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:590 Future Dividends Estimate Data
Date (Data in HK$) Dividend per Share (annual) Avg. No. Analysts
2023-03-31 0.00 1.00
2022-03-31 0.00 1.00
2021-03-31 1.17 8.00
2020-03-31 1.13 10.00
2019-03-31 1.12 10.00
SEHK:590 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2018-11-28 1.100 4.679
2018-06-27 1.100 4.062
2017-12-19 1.100 3.624
2017-07-20 1.100 3.630
2017-06-29 1.100 3.882
2016-12-16 1.100 4.528
2016-11-24 1.100 5.120
2016-07-15 0.655 3.309
2016-06-23 0.655 3.545
2015-12-18 0.630 3.872
2015-11-26 0.630 3.736
2015-08-19 1.100 5.604
2014-07-17 1.276 5.313
2014-06-25 1.276 5.446
2013-07-18 0.860 3.467
2013-06-27 0.860 4.480
2012-06-27 0.960 4.437
2011-11-28 0.950 4.148
2011-06-29 0.680 2.015
2010-11-29 0.540 2.057
2010-07-22 0.560 3.358
2009-12-17 0.270 3.430
2009-07-22 0.170 3.996
2009-03-20 0.255 9.059

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Luk Fook Holdings (International)'s earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.5x coverage).
X
Income/ dividend checks
We assess Luk Fook Holdings (International)'s dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Luk Fook Holdings (International) afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Luk Fook Holdings (International) has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

590 Management

 What is the CEO of Luk Fook Holdings (International)'s salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Wai Wong
COMPENSATION HK$70,407,000
AGE 67
CEO Bio

Mr. Wai Sheung Wong is the Founder of Luk Fook Holdings (International) Limited and serves as its Chief Executive. He is a Co-Owner at Wong's Family Trust. Mr. Wong is responsible for the overall strategic planning and management of the Luk Fook Holdings International Ltd. He has been Honorary Vice-president of the Forth Council Gemological Association of China, Gems & Jewelry Trade Association of China since 2007. He has over 40 years of experience in the Jewellery industry in Hong Kong. Mr. Wong has been the Chairman at Luk Fook Holdings International Ltd. since August 22, 2012. He has been the honorary permanent Chairman of Jadeware Traders Industry & Commerce Association and Chairman of Supervisory Committee of Kowloon Jewellers' and Goldsmiths' Association since April 2001. He has been the Honorary Chairman of Macau Goldsmith's Guild since 2005 and of the First General Committee of Guangdong Golden Jewelry and Jade Industry's Association since 2006. Mr. Wong served as the Chairman of Luk Fook Holdings International Ltd. until April 12, 2005. He has been an associate director of The Kowloon Gold Silver and Jewel Merchant’s Staff Association since November 1993. He has been an Executive Director of Luk Fook Holdings International Ltd. since March 04, 1997. He has also been a member of Hong Kong Trade Development Council Jewellery Advisory Committee and QTSA Governing Council (Retailer Category) and member of General Committee of Hong Kong Brand Development Council since 2008. Besides, he is also a member of the Guangzhou Huadu District Municipal Committee of the Chinese People's Political Consultative Conference.

CEO Compensation
  • Wai's compensation has been consistent with company performance over the past year.
  • Wai's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Luk Fook Holdings (International) management team in years:

3.4
Average Tenure
56
Average Age
  • The tenure for the Luk Fook Holdings (International) management team is about average.
Management Team

Wai Wong

TITLE
Founder
COMPENSATION
HK$70M
AGE
67

Nancy Wong

TITLE
Executive Director & Deputy CEO
COMPENSATION
HK$5M
AGE
37
TENURE
0.3 yrs

Moon Chuen Tse

TITLE
Co-Founder
COMPENSATION
HK$4M
AGE
67

Pauline Yeung

TITLE
Co-Founder & Non-Executive Director
COMPENSATION
HK$170K
AGE
51

So Chan

TITLE
CFO, Company Secretary & Executive Director
COMPENSATION
HK$6M
AGE
58
TENURE
6.5 yrs

Shirley Wong

TITLE
COO & Executive Director
COMPENSATION
HK$7M
AGE
45
TENURE
0.3 yrs

Icy Chung

TITLE
Deputy Product Development Director & Executive Director
COMPENSATION
HK$1M
AGE
48

Kwok Kau Au

TITLE
Co-Founder and Group General Manager
AGE
69
TENURE
12.2 yrs

So Wong

TITLE
Deputy Financial Controller
AGE
56
Board of Directors Tenure

Average tenure and age of the Luk Fook Holdings (International) board of directors in years:

7.4
Average Tenure
54.5
Average Age
  • The tenure for the Luk Fook Holdings (International) board of directors is about average.
Board of Directors

Wai Wong

TITLE
Founder
COMPENSATION
HK$70M
AGE
67
TENURE
6.6 yrs

Nancy Wong

TITLE
Executive Director & Deputy CEO
COMPENSATION
HK$5M
AGE
37
TENURE
10.5 yrs

Moon Chuen Tse

TITLE
Co-Founder
COMPENSATION
HK$4M
AGE
67
TENURE
6.6 yrs

Danny Wong

TITLE
Non-Executive Deputy Chairman
COMPENSATION
HK$170K
AGE
41
TENURE
6.6 yrs

Pauline Yeung

TITLE
Co-Founder & Non-Executive Director
COMPENSATION
HK$170K
AGE
51
TENURE
22 yrs

So Chan

TITLE
CFO, Company Secretary & Executive Director
COMPENSATION
HK$6M
AGE
58
TENURE
3.6 yrs

Shirley Wong

TITLE
COO & Executive Director
COMPENSATION
HK$7M
AGE
45
TENURE
7.4 yrs

Icy Chung

TITLE
Deputy Product Development Director & Executive Director
COMPENSATION
HK$1M
AGE
48
TENURE
7.4 yrs

Alexander Tai

TITLE
Independent Non-Executive Director
COMPENSATION
HK$300K
AGE
61
TENURE
10.7 yrs

Stephen Ip

TITLE
Independent Non-Executive Director
COMPENSATION
HK$300K
AGE
67
TENURE
7.4 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Luk Fook Holdings (International) insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
06. Mar 19 Sell Hau Yeung Wong Individual 04. Mar 19 04. Mar 19 -10,000 HK$26.05 HK$-260,500
06. Mar 19 Buy Wai Wong Individual 04. Mar 19 04. Mar 19 390,000 HK$25.97 HK$10,127,402
06. Mar 19 Buy Wai Wong Individual 05. Mar 19 05. Mar 19 45,000 HK$25.74 HK$1,158,300
04. Mar 19 Buy Wai Wong Individual 28. Feb 19 28. Feb 19 133,000 HK$26.15 HK$3,477,444
04. Mar 19 Buy Wai Wong Individual 01. Mar 19 01. Mar 19 100,000 HK$26.35 HK$2,635,000
19. Feb 19 Buy Wai Wong Individual 18. Feb 19 18. Feb 19 83,000 HK$24.06 HK$1,996,997
18. Feb 19 Buy Wai Wong Individual 15. Feb 19 15. Feb 19 52,000 HK$23.55 HK$1,224,501
18. Feb 19 Buy Wai Wong Individual 13. Feb 19 13. Feb 19 27,000 HK$24.40 HK$658,800
18. Feb 19 Buy Wai Wong Individual 14. Feb 19 14. Feb 19 66,000 HK$24.15 HK$1,594,052
13. Feb 19 Buy Colonial First State Asset Management (Australia) Limited Company 12. Feb 19 12. Feb 19 233,000 HK$24.27 HK$5,654,910
14. Jan 19 Buy Silchester International Investors LLP Company 14. Jan 19 14. Jan 19 142,000 HK$22.15 HK$3,145,300
11. Dec 18 Buy Colonial First State Asset Management (Australia) Limited Company 06. Dec 18 06. Dec 18 408,000 HK$23.49 HK$9,583,920
26. Oct 18 Buy Wai Wong Individual 24. Oct 18 24. Oct 18 91,000 HK$26.06 HK$2,371,296
26. Oct 18 Buy Wai Wong Individual 23. Oct 18 23. Oct 18 53,000 HK$25.22 HK$1,336,649
26. Oct 18 Buy Wai Wong Individual 25. Oct 18 25. Oct 18 1,000 HK$25.05 HK$25,050
26. Oct 18 Buy Wai Wong Individual 26. Oct 18 26. Oct 18 114,000 HK$25.19 HK$2,871,796
19. Oct 18 Buy Silchester International Investors LLP Company 18. Oct 18 18. Oct 18 69,000 HK$24.23 HK$1,671,629
10. Sep 18 Buy Hon Hung Li Individual 05. Sep 18 05. Sep 18 20,000 HK$26.68 HK$533,500
23. Aug 18 Buy Hon Hung Li Individual 21. Aug 18 21. Aug 18 35,000 HK$26.21 HK$917,500
21. Aug 18 Buy Hon Hung Li Individual 16. Aug 18 16. Aug 18 10,000 HK$27.40 HK$274,000
21. Aug 18 Buy Hon Hung Li Individual 20. Aug 18 20. Aug 18 5,000 HK$26.25 HK$131,250
15. Aug 18 Buy Lan Wong Individual 14. Aug 18 14. Aug 18 13,000 HK$26.55 HK$345,150
15. Aug 18 Buy Lan Wong Individual 13. Aug 18 13. Aug 18 24,000 HK$26.80 HK$643,200
15. Aug 18 Buy Wai Wong Individual 13. Aug 18 13. Aug 18 550,000 HK$26.80 HK$14,740,000
13. Aug 18 Buy Wai Wong Individual 10. Aug 18 10. Aug 18 10,000 HK$27.40 HK$274,000
09. Aug 18 Buy Wai Wong Individual 07. Aug 18 07. Aug 18 20,000 HK$26.60 HK$532,000
09. Aug 18 Buy Wai Wong Individual 06. Aug 18 06. Aug 18 143,000 HK$26.94 HK$3,852,992
27. Jul 18 Buy So Chan Individual 26. Jul 18 26. Jul 18 40,000 HK$28.21 HK$1,128,500
23. Jul 18 Buy Colonial First State Asset Management (Australia) Limited Company 19. Jul 18 19. Jul 18 711,000 HK$29.35 HK$20,867,851
10. Jul 18 Buy Colonial First State Asset Management (Australia) Limited Company 09. Jul 18 09. Jul 18 1,826,000 HK$32.15 HK$58,705,897
18. May 18 Sell Silchester International Investors LLP Company 17. May 18 17. May 18 -130,000 HK$33.86 HK$-4,402,359
28. Mar 18 Buy Moon Chuen Tse Individual 23. Mar 18 23. Mar 18 10,000 HK$26.50 HK$265,000
28. Mar 18 Buy Moon Chuen Tse Individual 26. Mar 18 26. Mar 18 1,000 HK$26.40 HK$26,400
X
Management checks
We assess Luk Fook Holdings (International)'s management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Luk Fook Holdings (International) has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

590 News

Simply Wall St News

Luk Fook Holdings (International) (HKG:590) Shareholders Have Enjoyed A 49% Share Price Gain

Just take a look at Luk Fook Holdings (International) Limited (HKG:590), which is up 49%, over three years, soundly beating the market return of 31% (not including dividends). … One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. … Luk Fook Holdings (International) was able to grow its EPS at 6.1% per year over three years, sending the share price higher.

Simply Wall St -

What Kind Of Shareholder Owns Most Luk Fook Holdings (International) Limited (HKG:590) Stock?

If you want to know who really controls Luk Fook Holdings (International) Limited (HKG:590), then you'll have to look at the makeup of its share registry. … It has a market capitalization of HK$15b, which means it would generally expect to see some institutions on the share registry. … institutions are noticeable on the share registry.

Simply Wall St -

Luk Fook Holdings (International) Limited (HKG:590) Is Employing Capital Very Effectively

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Understanding Return On Capital Employed (ROCE). … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

Does Luk Fook Holdings (International) Limited (HKG:590) Have A Place In Your Portfolio?

Historically, Luk Fook Holdings (International) Limited (HKG:590) has paid dividends to shareholders, and these days it yields 4.6%. … Does Luk Fook Holdings (International) tick all the boxes of a great dividend stock? … Check out our latest analysis for Luk Fook Holdings (International)

Simply Wall St -

Should You Be Holding Luk Fook Holdings (International) Limited (HKG:590)?

In the case of Luk Fook Holdings (International) Limited (HKG:590), there's. … that has been able to sustain great financial health over the past … Below, I've touched on some key aspects you should know on a high level

Simply Wall St -

Have Insiders Been Buying Luk Fook Holdings (International) Limited (HKG:590) Shares This Year?

We often see insiders buying up shares in companies that perform well over the long term. … So we'll take a look at whether insiders have been buying or selling shares in Luk Fook Holdings (International) Limited (HKG:590). … Luk Fook Holdings (International) Insider Transactions Over The Last Year.

Simply Wall St -

Luk Fook Holdings (International) Limited (HKG:590): Time For A Financial Health Check

While small-cap stocks, such as Luk Fook Holdings (International) Limited (HKG:590) with its market cap of HK$13b, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Companies operating in the Specialty Retail industry facing headwinds from current disruption,.

Simply Wall St -

Is Luk Fook Holdings (International) Limited's (HKG:590) ROE Of 15% Impressive?

This article is for those who would like to learn about Return On Equity (ROE). … Our data shows Luk Fook Holdings (International) has a return on equity of 15% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Don't Sell Luk Fook Holdings (International) Limited (HKG:590) Before You Read This

To keep it practical, we'll show how Luk Fook Holdings (International) Limited's (HKG:590) P/E ratio could help you assess the value on offer. … Based on the last twelve months, Luk Fook Holdings (International)'s P/E ratio is 10.05. … How Do You Calculate Luk Fook Holdings (International)'s P/E Ratio

Simply Wall St -

Understanding Your Return On Investment In Luk Fook Holdings (International) Limited (HKG:590)

and want a simplistic look at the return on Luk Fook Holdings (International) Limited (HKG:590) stock. … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Therefore, looking at how efficiently Luk Fook Holdings (International) is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

590 Company Info

Description

Luk Fook Holdings (International) Limited, an investment holding company, engages in sourcing, designing, wholesaling, trademark licensing, and retailing various gold and platinum jewelry, and gem-set jewelry. The company is also involved in gold bullion trading; wholesaling polished diamonds; property holding; retailing optical products; wholesaling and retailing watches; and the provision of quality examination services, as well as the authentication of gemstones. In addition, it provides software development and Internet related services. As of March 31, 2018, the company operated a total of 1,631 shops in Hong Kong, Macau, Mainland China, Singapore, Korea, Malaysia, the United States, Canada, and Australia. Luk Fook Holdings (International) Limited was founded in 1991 and is headquartered in Shatin, Hong Kong.

Details
Name: Luk Fook Holdings (International) Limited
590
Exchange: SEHK
Founded: 1991
HK$15,881,267,342
587,107,850
Website: http://www.lukfook.com
Address: Luk Fook Holdings (International) Limited
Metropole Square,
15th, 20th, 25th & 27th Floor,
Shatin,
New Territories, Hong Kong
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 590 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 07. May 1997
OTCPK LKFL.F Ordinary Shares Pink Sheets LLC US USD 07. May 1997
BST LUY1 Ordinary Shares Boerse-Stuttgart DE EUR 07. May 1997
SHSC 590 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 07. May 1997
SZSC 590 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 07. May 1997
Number of employees
Current staff
Staff numbers
7,800
Luk Fook Holdings (International) employees.
Industry
Specialty Stores
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/19 12:39
End of day share price update: 2019/03/19 00:00
Last estimates confirmation: 2019/03/06
Last earnings filing: 2018/12/27
Last earnings reported: 2018/09/30
Last annual earnings reported: 2018/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.