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Luk Fook Holdings (International)

SEHK:590
Snowflake Description

Proven track record with adequate balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
590
SEHK
HK$15B
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 23 days ago. More info.


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590 Share Price and Events
7 Day Returns
1%
SEHK:590
1.3%
HK Specialty Retail
0.8%
HK Market
1 Year Returns
-15.3%
SEHK:590
-7.4%
HK Specialty Retail
-4.4%
HK Market
590 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Luk Fook Holdings (International) (590) 1% -2.2% -15.3% -15.3% 30% 2.9%
HK Specialty Retail 1.3% 5% -8.8% -7.4% 17.4% -23%
HK Market 0.8% 1.5% -7.4% -4.4% 17.7% 1.6%
1 Year Return vs Industry and Market
  • 590 underperformed the Specialty Retail industry which returned -7.4% over the past year.
  • 590 underperformed the Market in Hong Kong which returned -4.4% 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

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 12 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 0.83
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.83 (1 + (1- 25%) (15.9%))
0.952
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% + (0.952 * 6.65%)
8.34%

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 (@ 8.34%)
2020 823.50 Analyst x2 760.14
2021 996.67 Analyst x3 849.20
2022 1,123.50 Analyst x2 883.62
2023 1,224.41 Est @ 8.98% 888.89
2024 1,308.75 Est @ 6.89% 877.01
2025 1,379.71 Est @ 5.42% 853.43
2026 1,440.37 Est @ 4.4% 822.40
2027 1,493.36 Est @ 3.68% 787.05
2028 1,540.79 Est @ 3.18% 749.57
2029 1,584.30 Est @ 2.82% 711.44
Present value of next 10 years cash flows HK$8,182.75
SEHK:590 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= HK$1,584.30 × (1 + 2%) ÷ (8.34% – 2%)
HK$25,520.50
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= HK$25,520.50 ÷ (1 + 8.34%)10
HK$11,460.13
SEHK:590 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= HK$8,182.75 + HK$11,460.13
HK$19,642.89
Equity Value per Share
(HKD)
= Total value / Shares Outstanding
= HK$19,642.89 / 587.11
HK$33.46
SEHK:590 Discount to Share Price
Calculation Result
Value per share (HKD) From above. HK$33.46
Current discount Discount to share price of HK$24.70
= -1 x (HK$24.70 - HK$33.46) / HK$33.46
26.2%

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
26%
Share price is HK$24.7 vs Future cash flow value of HK$33.46
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, and 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 (2019-03-31) in HKD HK$2.54
SEHK:590 Share Price ** SEHK (2019-07-19) in HKD HK$24.7
Hong Kong Specialty Retail Industry PE Ratio Median Figure of 35 Publicly-Listed Specialty Retail Companies 11.41x
Hong Kong Market PE Ratio Median Figure of 1,511 Publicly-Listed Companies 10.76x

* 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)

= 24.7 ÷ 2.54

9.71x

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

  • Luk Fook Holdings (International) is good value 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 9.71x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
5.6%per year
Hong Kong Specialty Retail Industry PEG Ratio Median Figure of 12 Publicly-Listed Specialty Retail Companies 0.82x
Hong Kong Market PEG Ratio Median Figure of 480 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

= 9.71x ÷ 5.6%

1.75x

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 (2019-03-31) in HKD HK$17.91
SEHK:590 Share Price * SEHK (2019-07-19) in HKD HK$24.7
Hong Kong Specialty Retail Industry PB Ratio Median Figure of 58 Publicly-Listed Specialty Retail Companies 0.89x
Hong Kong Market PB Ratio Median Figure of 2,197 Publicly-Listed Companies 0.92x
SEHK:590 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 24.7 ÷ 17.91

1.38x

* 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 3/6, 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 12 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
5.6%
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 12 Analysts 5.6%
SEHK:590 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 4.7%
Hong Kong Specialty Retail Industry Earnings Growth Rate Market Cap Weighted Average 16.6%
Hong Kong Specialty Retail Industry Revenue Growth Rate Market Cap Weighted Average 8.7%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average 11.3%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.7%

*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 (3 months ago) See Below
Future Estimates Average of up to 12 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
2022-03-31 18,203 1,382 1,741 7
2021-03-31 17,367 1,309 1,685 12
2020-03-31 16,373 1,563 1,556 11
SEHK:590 Past Financials Data
Date (Data in HKD Millions) Revenue Cash Flow Net Income *
2019-03-31 15,860 1,493
2018-12-31 16,007 1,504
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

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Luk Fook Holdings (International)'s earnings are expected to grow by 5.6% yearly, however this is not considered high growth (20% yearly).
  • Luk Fook Holdings (International)'s revenue is expected to grow by 4.7% 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 (3 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Luk Fook Holdings (International) Company Filings, last reported 3 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
2022-03-31 2.91 3.22 2.71 5.00
2021-03-31 2.78 3.05 2.58 9.00
2020-03-31 2.56 2.66 2.49 9.00
SEHK:590 Past Financials Data
Date (Data in HKD Millions) EPS *
2019-03-31 2.54
2018-12-31 2.56
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

*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 (9% vs -4.9%)
  • Luk Fook Holdings (International)'s earnings growth has exceeded the HK Specialty Retail industry average in the past year (9% vs 7.6%).
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 3 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
2019-03-31 15,859.99 1,492.75 2,442.65
2018-12-31 16,007.20 1,503.60 2,446.90
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

*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) has significantly improved its use of capital 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 4/6, 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 5.4x 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 3 months ago.

SEHK:590 Past Debt and Equity Data
Date (Data in HKD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 10,562.92 2,306.11 2,560.54
2018-12-31 10,562.92 2,306.11 2,560.54
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
  • Luk Fook Holdings (International)'s level of debt (21.8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (7.5% vs 21.8% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 447.1x coverage).
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
4.86%
Current annual income from Luk Fook Holdings (International) dividends. Estimated to be 4.87% next year.
If you bought HK$2,000 of Luk Fook Holdings (International) shares you are expected to receive HK$97 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 (2.07%).
  • Luk Fook Holdings (International)'s dividend is below the markets top 25% of dividend payers in Hong Kong (5.71%).
Upcoming dividend payment

Purchase Luk Fook Holdings (International) before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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 12 Analyst Estimates (S&P Global) See Below
Hong Kong Specialty Retail Industry Average Dividend Yield Market Cap Weighted Average of 27 Stocks 5.4%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 978 Stocks 3.6%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.7%

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$) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 1.30 7.00
2021-03-31 1.21 11.00
2020-03-31 1.14 11.00
SEHK:590 Past Annualized Dividends Data
Date (Data in HK$) Dividend per share (annual) Avg. Yield (%)
2019-06-27 1.200 4.886
2018-11-28 1.100 4.449
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
2008-07-25 0.255 11.109

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 (2.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.3x 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 1.2%) - 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 Sheung Wong
COMPENSATION HK$70,407,000
AGE 68
CEO Bio

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 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 Sheung's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Wai Sheung'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:

8.8
Average Tenure
57
Average Age
  • The average tenure for the Luk Fook Holdings (International) management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Wai Sheung Wong

TITLE
Founder
COMPENSATION
HK$70M
AGE
68

Nancy Wong

TITLE
Executive Director & Deputy CEO
COMPENSATION
HK$5M
AGE
38
TENURE
10.8 yrs

Moon Chuen Tse

TITLE
Co-Founder
COMPENSATION
HK$4M
AGE
68

Pauline Yeung

TITLE
Co-Founder & Non-Executive Director
COMPENSATION
HK$170K
AGE
52

So Kuen Chan

TITLE
CFO, Company Secretary & Executive Director
COMPENSATION
HK$6M
AGE
59
TENURE
6.8 yrs

Shirley Wong

TITLE
COO & Executive Director
COMPENSATION
HK$7M
AGE
46
TENURE
0.6 yrs

Icy Chung

TITLE
Deputy Product Development Director & Executive Director
COMPENSATION
HK$1M
AGE
49

Kwok Kau Au

TITLE
Co-Founder and Group General Manager
AGE
70
TENURE
12.5 yrs

Stephanie Chan

TITLE
Investor Relations & Corporate Communications Officer

So Kuen Wong

TITLE
Deputy Financial Controller
AGE
57
Board of Directors Tenure

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

7.8
Average Tenure
55.5
Average Age
  • The tenure for the Luk Fook Holdings (International) board of directors is about average.
Board of Directors

Wai Sheung Wong

TITLE
Founder
COMPENSATION
HK$70M
AGE
68
TENURE
6.9 yrs

Nancy Wong

TITLE
Executive Director & Deputy CEO
COMPENSATION
HK$5M
AGE
38
TENURE
10.8 yrs

Moon Chuen Tse

TITLE
Co-Founder
COMPENSATION
HK$4M
AGE
68
TENURE
6.9 yrs

Danny Wong

TITLE
Non-Executive Deputy Chairman
COMPENSATION
HK$170K
AGE
42
TENURE
6.9 yrs

Pauline Yeung

TITLE
Co-Founder & Non-Executive Director
COMPENSATION
HK$170K
AGE
52
TENURE
22.3 yrs

So Kuen Chan

TITLE
CFO, Company Secretary & Executive Director
COMPENSATION
HK$6M
AGE
59
TENURE
3.9 yrs

Shirley Wong

TITLE
COO & Executive Director
COMPENSATION
HK$7M
AGE
46
TENURE
7.8 yrs

Icy Chung

TITLE
Deputy Product Development Director & Executive Director
COMPENSATION
HK$1M
AGE
49
TENURE
7.8 yrs

Alexander Tai

TITLE
Independent Non-Executive Director
COMPENSATION
HK$300K
AGE
62
TENURE
11 yrs

Stephen Ip

TITLE
Independent Non-Executive Director
COMPENSATION
HK$300K
AGE
68
TENURE
7.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
15. May 19 Buy Colonial First State Asset Management (Australia) Limited Company 14. May 19 14. May 19 436,000 HK$25.94 HK$11,309,839
23. Apr 19 Sell Colonial First State Asset Management (Australia) Limited Company 18. Apr 19 18. Apr 19 -118,000 HK$28.49 HK$-3,361,820
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 Sheung Wong Individual 04. Mar 19 04. Mar 19 390,000 HK$25.97 HK$10,127,402
06. Mar 19 Buy Wai Sheung Wong Individual 05. Mar 19 05. Mar 19 45,000 HK$25.74 HK$1,158,300
04. Mar 19 Buy Wai Sheung Wong Individual 28. Feb 19 28. Feb 19 133,000 HK$26.15 HK$3,477,444
04. Mar 19 Buy Wai Sheung Wong Individual 01. Mar 19 01. Mar 19 100,000 HK$26.35 HK$2,635,000
19. Feb 19 Buy Wai Sheung Wong Individual 18. Feb 19 18. Feb 19 83,000 HK$24.06 HK$1,996,997
18. Feb 19 Buy Wai Sheung Wong Individual 15. Feb 19 15. Feb 19 52,000 HK$23.55 HK$1,224,501
18. Feb 19 Buy Wai Sheung Wong Individual 13. Feb 19 13. Feb 19 27,000 HK$24.40 HK$658,800
18. Feb 19 Buy Wai Sheung 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 Sheung Wong Individual 24. Oct 18 24. Oct 18 91,000 HK$26.06 HK$2,371,296
26. Oct 18 Buy Wai Sheung Wong Individual 23. Oct 18 23. Oct 18 53,000 HK$25.22 HK$1,336,649
26. Oct 18 Buy Wai Sheung Wong Individual 25. Oct 18 25. Oct 18 1,000 HK$25.05 HK$25,050
26. Oct 18 Buy Wai Sheung 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 Sze Wong Individual 14. Aug 18 14. Aug 18 13,000 HK$26.55 HK$345,150
15. Aug 18 Buy Lan Sze Wong Individual 13. Aug 18 13. Aug 18 24,000 HK$26.80 HK$643,200
15. Aug 18 Buy Wai Sheung Wong Individual 13. Aug 18 13. Aug 18 550,000 HK$26.80 HK$14,740,000
13. Aug 18 Buy Wai Sheung Wong Individual 10. Aug 18 10. Aug 18 10,000 HK$27.40 HK$274,000
09. Aug 18 Buy Wai Sheung Wong Individual 07. Aug 18 07. Aug 18 20,000 HK$26.60 HK$532,000
09. Aug 18 Buy Wai Sheung Wong Individual 06. Aug 18 06. Aug 18 143,000 HK$26.94 HK$3,852,992
27. Jul 18 Buy So Kuen Chan Individual 26. Jul 18 26. Jul 18 40,000 HK$28.21 HK$1,128,500
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) Limited (HKG:590): What Are The Future Prospects?

Looking at Luk Fook Holdings (International) Limited's (HKG:590) earnings update on 31 March 2019, the consensus outlook from analysts appear fairly confident, as a 5.2% increase in profits is expected in the upcoming year, against the past 5-year average growth rate of -4.9%. … Below is a brief commentary on the longer term outlook the market has for Luk Fook Holdings (International). … See our latest analysis for Luk Fook Holdings (International) What can we expect from Luk Fook Holdings (International) in the longer term?

Simply Wall St -

Is Luk Fook Holdings (International) Limited's (HKG:590) P/E Ratio Really That Good?

Luk Fook Holdings (International) has a price to earnings ratio of 9.96, based on the last twelve months. … Check out our latest analysis for Luk Fook Holdings (International) How Do I Calculate Luk Fook Holdings (International)'s Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Luk Fook Holdings (International): P/E of 9.96 = HK$25.7 ÷ HK$2.58 (Based on the trailing twelve months to September 2018.) Is A High P/E Ratio Good?

Simply Wall St -

A Holistic Look At Luk Fook Holdings (International) Limited (HKG:590)

By this I mean, I look at stocks holistically, from their financial health to their future outlook. … Good value with adequate balance sheet and pays a dividend 590's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. … SEHK:590 Historical Dividend Yield, June 13th 2019 Next Steps: For Luk Fook Holdings (International), I've put together three fundamental aspects you should further research: Future Outlook: What are well-informed industry analysts predicting for 590’s future growth?

Simply Wall St -

Three Things You Should Check Before Buying Luk Fook Holdings (International) Limited (HKG:590) For Its Dividend

Dividend paying stocks like Luk Fook Holdings (International) Limited (HKG:590) tend to be popular with investors, and for good reason - some research suggests a significant amount of all stock market returns come from reinvested dividends. … Last year, Luk Fook Holdings (International) paid a dividend while reporting negative free cash flow. … While we're not hugely bearish on it, overall we think there are potentially better dividend stocks than Luk Fook Holdings (International) out there.

Simply Wall St -

Is Luk Fook Holdings (International) Limited (HKG:590) A High Quality Stock To Own?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Luk Fook Holdings (International): 15% = HK$1.5b ÷ HK$9.9b (Based on the trailing twelve months to September 2018.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … Does Luk Fook Holdings (International) Have A Good Return On Equity? … Combining Luk Fook Holdings (International)'s Debt And Its 15% Return On Equity Although Luk Fook Holdings (International) does use debt, its debt to equity ratio of 0.18 is still low.

Simply Wall St -

Should You Worry About Luk Fook Holdings (International) Limited's (HKG:590) CEO Pay?

At the time of writing our data says that Luk Fook Holdings (International) Limited has a market cap of HK$15b, and is paying total annual CEO compensation of HK$70m. … Thus we can conclude that Wai Wong receives more in total compensation than the median of a group of companies in the same market, and of similar size to Luk Fook Holdings (International) Limited. … We compared the total CEO remuneration paid by Luk Fook Holdings (International) Limited, and compared it to remuneration at a group of similar sized companies.

Simply Wall St -

Here's Why I Think Luk Fook Holdings (International) (HKG:590) Is An Interesting Stock

In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Luk Fook Holdings (International) (HKG:590). … Luk Fook Holdings (International)'s Earnings Per Share Are Growing. … Luk Fook Holdings (International) maintained stable EBIT margins over the last year, all while growing revenue 19% to HK$16b.

Simply Wall St -

Are Insiders Buying Luk Fook Holdings (International) Limited (HKG:590) Stock?

So shareholders might well want to know whether insiders have been buying or selling shares in Luk Fook Holdings (International) Limited (HKG:590). … The Last 12 Months Of Insider Transactions At Luk Fook Holdings (International). … The good news for Luk Fook Holdings (International) share holders is that insiders were buying at near the current price.

Simply Wall St -

Calculating The Fair Value Of Luk Fook Holdings (International) Limited (HKG:590)

In this article we are going to estimate the intrinsic value of Luk Fook Holdings (International) Limited (HKG:590). … by projecting its future cash flows and then discounting them to today's value. … We generally believe that a company's value is the present value of all of the cash it will generate in the future.

Simply Wall St -

Is Luk Fook Holdings (International) Limited (HKG:590) As Strong As Its Balance Sheet Indicates?

Small-caps and large-caps are wildly popular among investors; however, mid-cap stocks, such as Luk Fook Holdings (International) Limited (HKG:590) with a market-capitalization of HK$16b, rarely draw their attention. … Despite this, the two other categories have lagged behind the risk-adjusted returns of commonly ignored mid-cap stocks. … Check out our latest analysis for Luk Fook Holdings (International)

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$14,501,563,895
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
7,600
Luk Fook Holdings (International) employees.
Industry
Specialty Stores
Retail
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/20 12:46
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/18
Last earnings filing: 2019/06/27
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


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.