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. More Details
Flawless balance sheet with reasonable growth potential.
Share Price & News
How has Luk Fook Holdings (International)'s share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 590 is not significantly more volatile than the rest 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.
7 Day Return
HK Specialty Retail
1 Year Return
HK Specialty Retail
Return vs Industry: 590 underperformed the Hong Kong Specialty Retail industry which returned 58.3% over the past year.
Return vs Market: 590 exceeded the Hong Kong Market which returned 22.4% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Luk Fook Holdings (International)'s share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StInvestors Who Bought Luk Fook Holdings (International) (HKG:590) Shares A Year Ago Are Now Up 58%
1 month ago | Simply Wall StEstimating The Fair Value Of Luk Fook Holdings (International) Limited (HKG:590)
1 month ago | Simply Wall StIs Luk Fook Holdings (International) Limited (HKG:590) A Good Fit For Your Dividend Portfolio?
Is Luk Fook Holdings (International) undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 590 (HK$23.5) is trading above our estimate of fair value (HK$14.5)
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 (20.9x) compared to the Hong Kong Specialty Retail industry average (16.3x).
PE vs Market: 590 is poor value based on its PE Ratio (20.9x) compared to the Hong Kong market (11.3x).
Price to Earnings Growth Ratio
PEG Ratio: 590 is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: 590 is overvalued based on its PB Ratio (1.3x) compared to the HK Specialty Retail industry average (1x).
How is Luk Fook Holdings (International) forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 590's forecast earnings growth (22.6% per year) is above the savings rate (1.5%).
Earnings vs Market: 590's earnings (22.6% per year) are forecast to grow faster than the Hong Kong market (19.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 590's revenue (16.2% per year) is forecast to grow faster than the Hong Kong market (12.7% per year).
High Growth Revenue: 590's revenue (16.2% 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 (10.9%).
How has Luk Fook Holdings (International) performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 590 has high quality earnings.
Growing Profit Margin: 590's current net profit margins (8%) are lower than last year (9.2%).
Past Earnings Growth Analysis
Earnings Trend: 590's earnings have declined by 0.07% per year over the past 5 years.
Accelerating Growth: 590's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 590 had negative earnings growth (-50%) over the past year, making it difficult to compare to the Specialty Retail industry average (-7.7%).
Return on Equity
High ROE: 590's Return on Equity (6.2%) is considered low.
How is Luk Fook Holdings (International)'s financial position?
Financial Position Analysis
Short Term Liabilities: 590's short term assets (HK$10.4B) exceed its short term liabilities (HK$2.4B).
Long Term Liabilities: 590's short term assets (HK$10.4B) exceed its long term liabilities (HK$338.3M).
Debt to Equity History and Analysis
Debt Level: 590's debt to equity ratio (6%) is considered satisfactory.
Reducing Debt: 590's debt to equity ratio has reduced from 8.8% to 6% over the past 5 years.
Debt Coverage: 590's debt is well covered by operating cash flow (404%).
Interest Coverage: 590 earns more interest than it pays, so coverage of interest payments is not a concern.
What is Luk Fook Holdings (International) current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 590's dividend (1.91%) is higher than the bottom 25% of dividend payers in the Hong Kong market (1.87%).
High Dividend: 590's dividend (1.91%) is low compared to the top 25% of dividend payers in the Hong Kong market (5.97%).
Stability and Growth of Payments
Stable Dividend: 590's dividend payments have been volatile in the past 10 years.
Growing Dividend: 590's dividend payments have fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (64.4%), 590's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 590's dividends in 3 years are forecast to be covered by earnings (54.4% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Wai Sheung Wong (69 yo)
Mr. Wai Sheung Wong is the Founder of Luk Fook Holdings (International) Limited and serves as its Chief Executive Officer since December 1, 2018. He is a Co-Owner at Wong's Family Trust. Mr. Wong is respon...
CEO Compensation Analysis
Compensation vs Market: Wai Sheung's total compensation ($USD7.08M) is above average for companies of similar size in the Hong Kong market ($USD538.96K).
Compensation vs Earnings: Wai Sheung's compensation has been consistent with company performance over the past year.
Experienced Management: 590's management team is seasoned and experienced (10.8 years average tenure).
Experienced Board: 590's board of directors are considered experienced (8.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 590 insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Luk Fook Holdings (International) Limited's company bio, employee growth, exchange listings and data sources
- Name: Luk Fook Holdings (International) Limited
- Ticker: 590
- Exchange: SEHK
- Founded: 1991
- Industry: Specialty Stores
- Sector: Retail
- Market Cap: HK$13.797b
- Shares outstanding: 587.11m
- Website: https://www.lukfook.com
Number of Employees
- Luk Fook Holdings (International) Limited
- Metropole Square
- 15th, 20th, 25th & 27th Floor
- Sha Tin
- New Territories
- Hong Kong
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 jewe...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/16 15:41|
|End of Day Share Price||2021/06/16 00:00|
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.