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590

Luk Fook Holdings (International)SEHK:590 Stock Report

Market Cap

HK$12.8b

7D

-3.1%

1Y

13.7%

Updated

25 Oct, 2021

Data

Company Financials +
590 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance3/6
Financial Health5/6
Dividends4/6

590 Overview

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 products.

Price History & Performance

Summary of all time highs, changes and price drops for Luk Fook Holdings (International)
Historical stock prices
Current Share PriceHK$21.80
52 Week HighHK$16.70
52 Week LowHK$28.50
Beta0.63
1 Month Change8.46%
3 Month Change-12.97%
1 Year Change13.66%
3 Year Change-12.80%
5 Year Change-6.44%
Change since IPO1,686.88%

Recent News & Updates

Sep 20
Some Investors May Be Worried About Luk Fook Holdings (International)'s (HKG:590) Returns On Capital

Some Investors May Be Worried About Luk Fook Holdings (International)'s (HKG:590) Returns On Capital

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Aug 12
Here's Why Shareholders May Want To Be Cautious With Increasing Luk Fook Holdings (International) Limited's (HKG:590) CEO Pay Packet

Here's Why Shareholders May Want To Be Cautious With Increasing Luk Fook Holdings (International) Limited's (HKG:590) CEO Pay Packet

Share price growth at Luk Fook Holdings (International) Limited ( HKG:590 ) has remained rather flat over the last few...

Jul 28
Luk Fook Holdings (International) (HKG:590) Seems To Use Debt Rather Sparingly

Luk Fook Holdings (International) (HKG:590) Seems To Use Debt Rather Sparingly

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Shareholder Returns

590HK Specialty RetailHK Market
7D-3.1%-2.4%2.1%
1Y13.7%23.7%5.9%

Return vs Industry: 590 underperformed the Hong Kong Specialty Retail industry which returned 23.7% over the past year.

Return vs Market: 590 exceeded the Hong Kong Market which returned 5.9% over the past year.

Price Volatility

Is 590's price volatile compared to industry and market?
590 volatility
590 Beta0.63
Industry Beta0.89
Market Beta1

Stable Share Price: 590 is less volatile than 75% of Hong Kong stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: 590's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19915,900Wai Sheung Wonghttps://www.lukfook.com

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 products. The company is also involved in gold bullion trading; wholesaling polished diamonds; property holding; wholesaling and retailing watches; electronic retailing of gold and jewelry products; 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 well as engages in the brand building and promotion activities.

Luk Fook Holdings (International) Fundamentals Summary

How do Luk Fook Holdings (International)'s earnings and revenue compare to its market cap?
590 fundamental statistics
Market CapHK$12.80b
Earnings (TTM)HK$1.02b
Revenue (TTM)HK$8.86b

12.6x

P/E Ratio

1.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
590 income statement (TTM)
RevenueHK$8.86b
Cost of RevenueHK$6.23b
Gross ProfitHK$2.63b
ExpensesHK$1.61b
EarningsHK$1.02b

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.73
Gross Margin29.71%
Net Profit Margin11.48%
Debt/Equity Ratio9.6%

How did 590 perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

42%

Payout Ratio

Valuation

Is Luk Fook Holdings (International) undervalued compared to its fair value and its price relative to the market?

12.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 590 (HK$21.8) is trading above our estimate of fair value (HK$15.84)

Significantly Below Fair Value: 590 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 590 is poor value based on its PE Ratio (12.6x) compared to the Hong Kong Specialty Retail industry average (11.2x).

PE vs Market: 590 is poor value based on its PE Ratio (12.6x) compared to the Hong Kong market (9.7x).


Price to Earnings Growth Ratio

PEG Ratio: 590 is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: 590's PB Ratio (1.1x) is in line with the HK Specialty Retail industry average.


Future Growth

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

15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 590's forecast earnings growth (15.5% per year) is above the savings rate (1.5%).

Earnings vs Market: 590's earnings (15.5% per year) are forecast to grow slower than the Hong Kong market (17.7% per year).

High Growth Earnings: 590's earnings are forecast to grow, but not significantly.

Revenue vs Market: 590's revenue (15.6% per year) is forecast to grow faster than the Hong Kong market (12.5% per year).

High Growth Revenue: 590's revenue (15.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 590's Return on Equity is forecast to be low in 3 years time (12.3%).


Past Performance

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

-1.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 590 has high quality earnings.

Growing Profit Margin: 590's current net profit margins (11.5%) are higher than last year (7.7%).


Past Earnings Growth Analysis

Earnings Trend: 590's earnings have declined by 1.4% per year over the past 5 years.

Accelerating Growth: 590's earnings growth over the past year (17.4%) exceeds its 5-year average (-1.4% per year).

Earnings vs Industry: 590 earnings growth over the past year (17.4%) underperformed the Specialty Retail industry 54.7%.


Return on Equity

High ROE: 590's Return on Equity (9%) is considered low.


Financial Health

How is Luk Fook Holdings (International)'s financial position?


Financial Position Analysis

Short Term Liabilities: 590's short term assets (HK$11.7B) exceed its short term liabilities (HK$2.9B).

Long Term Liabilities: 590's short term assets (HK$11.7B) exceed its long term liabilities (HK$241.0M).


Debt to Equity History and Analysis

Debt Level: 590's debt to equity ratio (9.6%) is considered satisfactory.

Reducing Debt: 590's debt to equity ratio has increased from 8.1% to 9.6% over the past 5 years.

Debt Coverage: 590's debt is well covered by operating cash flow (224.6%).

Interest Coverage: 590 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Dividend

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

3.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 590's dividend (3.33%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.22%).

High Dividend: 590's dividend (3.33%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.77%).


Stability and Growth of Payments

Stable Dividend: 590's dividend payments have been volatile in the past 10 years.

Growing Dividend: 590's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.8%), 590's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 590's dividends in 3 years are forecast to be well covered by earnings (49.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

11.1yrs

Average management tenure


CEO

Wai Sheung Wong (70 yo)

no data

Tenure

HK$45,317,000

Compensation

Mr. Wai Sheung Wong is the Founder of Luk Fook Holdings (International) Limited and serves as its Chief Executive Officer since December 1, 2018. He is a Co-Owner at Wong's Family Trust. Mr. Wong is respon...


CEO Compensation Analysis

Compensation vs Market: Wai Sheung's total compensation ($USD5.83M) is above average for companies of similar size in the Hong Kong market ($USD497.52K).

Compensation vs Earnings: Wai Sheung's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: 590's management team is seasoned and experienced (11.1 years average tenure).


Board Members

Experienced Board: 590's board of directors are considered experienced (9.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Luk Fook Holdings (International) Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Luk Fook Holdings (International) Limited
  • Ticker: 590
  • Exchange: SEHK
  • Founded: 1991
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: HK$12.799b
  • Shares outstanding: 587.11m
  • Website: https://www.lukfook.com

Number of Employees


Location

  • Luk Fook Holdings (International) Limited
  • Metropole Square
  • 15th, 20th, 25th & 27th Floor
  • Sha Tin
  • New Territories
  • Hong Kong

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 16:40
End of Day Share Price2021/10/25 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.