SEHK:590

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Luk Fook Holdings (International)

Executive Summary

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.


Snowflake Analysis

Flawless balance sheet average dividend payer.

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.9%

590

1.9%

HK Specialty Retail

2.0%

HK Market


1 Year Return

-20.0%

590

32.9%

HK Specialty Retail

6.0%

HK Market

Return vs Industry: 590 underperformed the Hong Kong Specialty Retail industry which returned 32.9% over the past year.

Return vs Market: 590 underperformed the Hong Kong Market which returned 6% over the past year.


Shareholder returns

590IndustryMarket
7 Day-1.9%1.9%2.0%
30 Day0.1%0.6%1.0%
90 Day-0.2%23.9%9.4%
1 Year-15.5%-20.0%39.1%32.9%10.4%6.0%
3 Year-32.6%-41.1%22.5%8.8%0.8%-10.1%
5 Year-4.9%-25.8%53.0%24.1%10.8%-7.8%

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

Valuation

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

11.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 590 (HK$16.48) is trading above our estimate of fair value (HK$13.01)

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 (11.2x) compared to the HK Specialty Retail industry average (10.7x).

PE vs Market: 590 is poor value based on its PE Ratio (11.2x) compared to the Hong Kong market (10.4x).


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 is overvalued based on its PB Ratio (0.9x) compared to the HK Specialty Retail industry average (0.8x).


Next Steps

Future Growth

How is Luk Fook Holdings (International) forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

13.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 590's forecast earnings growth (13.7% per year) is above the savings rate (1.6%).

Earnings vs Market: 590's earnings (13.7% per year) are forecast to grow slower than the Hong Kong market (18.2% per year).

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

Revenue vs Market: 590's revenue (6.5% per year) is forecast to grow slower than the Hong Kong market (11.3% per year).

High Growth Revenue: 590's revenue (6.5% 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 (11.2%).


Next Steps

Past Performance

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

1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 590 has high quality earnings.

Growing Profit Margin: 590's current net profit margins (7.7%) are lower than last year (9.4%).


Past Earnings Growth Analysis

Earnings Trend: 590's earnings have grown by 1.1% 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 (-41.9%) over the past year, making it difficult to compare to the Specialty Retail industry average (-24.9%).


Return on Equity

High ROE: 590's Return on Equity (8.3%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: 590's short term assets (HK$11.1B) exceed its short term liabilities (HK$3.1B).

Long Term Liabilities: 590's short term assets (HK$11.1B) exceed its long term liabilities (HK$440.1M).


Debt to Equity History and Analysis

Debt Level: 590's debt to equity ratio (14.5%) is considered satisfactory.

Reducing Debt: 590's debt to equity ratio has reduced from 19.7% to 14.5% over the past 5 years.

Debt Coverage: 590's debt is well covered by operating cash flow (201.8%).

Interest Coverage: 590's interest payments on its debt are well covered by EBIT (70.8x coverage).


Balance Sheet


Next Steps

Dividend

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

6.07%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 590's dividend (6.07%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.29%).

High Dividend: 590's dividend (6.07%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.86%).


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 reasonable payout ratio (67.8%), 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 (52.1% payout ratio).


Next Steps

Management

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

9.9yrs

Average management tenure


CEO

Wai Sheung Wong (69 yo)

no data

Tenure

HK$54,930,000

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 ($USD7.09M) is above average for companies of similar size in the Hong Kong market ($USD565.26K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Wai Sheung Wong
Founderno dataHK$54.93m1.41%
HK$ 137.5m
Moon Chuen Tse
Co-Founder8yrsHK$2.91m0.074%
HK$ 7.2m
Po Ling Yeung
Co-Founder & Non-Executive Director23.42yrsHK$170.00kno data
So Kuen Chan
CFO, Company Secretary & Executive Director5yrsHK$5.46m0.021%
HK$ 2.1m
Hau Yeung Wong
COO & Executive Director8.83yrsHK$4.89mno data
Lan Sze Wong
Executive Director & Deputy CEO11.92yrsHK$4.28m0.11%
HK$ 10.7m
Kwok Kau Au
Co-Founder and Group General Manager13.58yrsno datano data
Stephanie Chan
Investor Relations & Corporate Communications Officerno datano datano data
So Kuen Wong
Deputy Financial Controllerno datano datano data

9.9yrs

Average Tenure

59yo

Average Age

Experienced Management: 590's management team is seasoned and experienced (9.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wai Sheung Wong
Founderno dataHK$54.93m1.41%
HK$ 137.5m
Moon Chuen Tse
Co-Founder8yrsHK$2.91m0.074%
HK$ 7.2m
Po Ling Yeung
Co-Founder & Non-Executive Director23.42yrsHK$170.00kno data
So Kuen Chan
CFO, Company Secretary & Executive Director5yrsHK$5.46m0.021%
HK$ 2.1m
Hau Yeung Wong
COO & Executive Director8.83yrsHK$4.89mno data
Lan Sze Wong
Executive Director & Deputy CEO11.92yrsHK$4.28m0.11%
HK$ 10.7m
King Wai Hui
Independent Non-Executive Director5yrsHK$250.00kno data
Chiu Chung Hui
Non-Executive Director8.83yrsHK$170.00kno data
Shu Kwan Ip
Independent Non-Executive Director8.83yrsHK$300.00kno data
Ho Lung Wong
Non-Executive Deputy Chairman8yrsHK$230.00k0.061%
HK$ 6.0m
Kwok Leung Tai
Independent Non-Executive Director12.08yrsHK$300.00kno data
Wing Sum Mak
Independent Non Executive Director7.67yrsHK$300.00kno data

8.4yrs

Average Tenure

65.5yo

Average Age

Experienced Board: 590's board of directors are considered experienced (8.4 years average tenure).


Ownership

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

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 company bio, 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$9.746b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LKFL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 1997
590SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDMay 1997
LUY1BST (Boerse-Stuttgart)YesOrdinary SharesDEEURMay 1997
590SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 1997
590SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDMay 1997

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/05 12:33
End of Day Share Price2020/08/05 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.