How Stronger Half-Year Earnings With Unchanged Dividend Policy Will Impact Luk Fook (SEHK:590) Investors

• Luk Fook Holdings (International) reported past-half-year results to 30 September 2025 showing revenue of HK$6,843.38 million and net income of HK$619.19 million, while its board declared an interim dividend of HK$0.55 per share, payable around 24 December 2025 to shareholders on record as of 12 December 2025.
• The combination of higher earnings per share of HK$1.05 and an unchanged interim dividend highlights improved profitability without altering the company’s existing payout level.
• We’ll now examine how this stronger half-year profitability, particularly the jump in net income, affects Luk Fook’s existing investment narrative.

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Luk Fook Holdings (International) Investment Narrative Recap

To own Luk Fook, you need to believe the jewellery group can convert its brand strength and product mix into resilient earnings, despite volatile gold prices and uneven consumer demand in Mainland China. The latest half year results support that case in the short term, with higher revenue and net income, but do not remove the key risk that a softer macro backdrop and weaker diamond spending could still pressure future sales.

The most relevant announcement here is the upgraded half year guidance issued on 20 November 2025, which foreshadowed revenue growth of roughly 20% to 30% and profit growth of around 40% to 50%. The reported results landed in that ballpark, helped by better margins on fixed price jewellery and higher gold prices, which ties directly into the near term catalyst of improving profitability, while leaving exposure to any future pullback in gold driven consumer sentiment.

Yet while earnings have just improved, investors should still be aware that...

Read the full narrative on Luk Fook Holdings (International) (it's free!)

Luk Fook Holdings (International)'s narrative projects HK$17.8 billion revenue and HK$1.9 billion earnings by 2028. This requires 10.1% yearly revenue growth and about HK$0.8 billion earnings increase from HK$1.1 billion today.

Uncover how Luk Fook Holdings (International)'s forecasts yield a HK$28.85 fair value, a 11% upside to its current price.

Exploring Other Perspectives

Three fair value estimates from the Simply Wall St Community span HK$14.68 to HK$28.85, underlining how differently you and other investors may view Luk Fook. Those views sit alongside the recent jump in half year profit, which in turn heightens the importance of understanding how sensitive that improvement is to gold prices and consumer demand.

Explore 3 other fair value estimates on Luk Fook Holdings (International) - why the stock might be worth 44% less than the current price!

Build Your Own Luk Fook Holdings (International) Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Luk Fook Holdings (International) research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Luk Fook Holdings (International) research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Luk Fook Holdings (International)'s overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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