Stock Movement: LUK FOOK HOLD (00590) Rises Over 4% as Q2 Same-Store Sales Increase by 10%; Citigroup Expects Midterm Profit Margin to Exceed Expectations

Stock News
10/24

LUK FOOK HOLD (00590) shares surged over 4%, currently up 4.39% at HKD 26.16 with a trading volume of HKD 19.54 million. The company announced that its overall retail value, retail income, and same-store sales for the second quarter have all outperformed those of the first quarter, rising by 18%, 15%, and 10%, respectively. In Hong Kong, Macau, and international markets, retail value and retail income also rose by 13%, while same-store sales improved to a double-digit growth rate of +11%. Citigroup released a research report stating that the sales data for LUK FOOK HOLD in the second quarter of fiscal year 2026 fell short of their expectations; however, after discussing the performance with management, Citigroup believes that the profit margin for the first half of fiscal year 2026 is better than their previous projections. They anticipate that LUK FOOK HOLD will announce its midterm results in late November, with expected revenue growth of 18%, a gross margin expansion of 2.3 percentage points from previous years to 35%, a decrease in general and administrative expenses and sales by 2.4 percentage points to 18.9%, and an increase in hedging losses to HKD 400 million, resulting in a 31% growth in net profit.

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