0842 GMT - Luk Fook's FY 2027 net profit is likely to decline as its margins normalize, say Citi analysts in a note. While the Hong Kong-listed jewelry company's FY 2026 preliminary results beat expectations, lower gold prices in FY 2027 are likely to weigh on Luk Fook's gross profit margin, they say. Operating leverage is also likely to cause net profit margin to narrow, but its drag is partly offset by lower hedging losses, they add. Still, FY 2026 preliminary results leads Citi to raise their FY 2027 and FY 2028 net profit estimates by 9% and 8%, respectively. Citi cuts its target price to HK$30.20 from HK$32.80 after adjusting cashflow assumptions and maintains a buy rating. Shares closed 4.6% higher at HK$21.44. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

June 11, 2026 04:42 ET (08:42 GMT)

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