Luk Fook Holdings (International) Full Year 2024 Earnings: Misses Expectations

Luk Fook Holdings (International) (HKG:590) Full Year 2024 Results

Key Financial Results

• Revenue: HK$15.3b (up 28% from FY 2023).
• Net income: HK$1.77b (up 38% from FY 2023).
• Profit margin: 12% (in line with FY 2023).
• EPS: HK$3.01 (up from HK$2.19 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Luk Fook Holdings (International) Revenues and Earnings Miss Expectations

Revenue missed analyst estimates by 1.8%. Earnings per share (EPS) also missed analyst estimates by 1.8%.

The primary driver behind last 12 months revenue was the Retailing - Hong Kong, Macau and Overseas segment contributing a total revenue of HK$9.99b (65% of total revenue). Notably, cost of sales worth HK$11.2b amounted to 73% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to HK$1.85b (77% of total expenses). Explore how 590's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 4.7% p.a. on average during the next 3 years, compared to a 8.5% growth forecast for the Specialty Retail industry in Hong Kong.

Performance of the Hong Kong Specialty Retail industry.

The company's shares are down 3.2% from a week ago.

Risk Analysis

Before you take the next step you should know about the 1 warning sign for Luk Fook Holdings (International) that we have uncovered.

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