Industrial Securities Co.,Ltd. has issued a research report initiating coverage on LUK FOOK HOLD (00590) with an "Overweight" rating. The firm forecasts net profits attributable to shareholders for FY26, FY27, and FY28 to be HKD 1.572 billion, HKD 1.728 billion, and HKD 1.891 billion, representing year-on-year increases of +42.9%, +9.9%, and +9.4%, respectively. Based on the closing price on January 29, the stock's price-to-earnings ratio relative to the forecasted FY2027 EPS is 11x, with a potential dividend yield of 5.2%, indicating attractive valuation.

The report states that the long-term upward trend in gold prices, coupled with the peak consumption season around dual holidays, is expected to continue boosting gold and jewelry consumption. The performance in the China, Hong Kong, and Macau markets is showing superior growth in turnover. LUK FOOK HOLD, with its high proportion of business in China, Hong Kong, Macau & overseas, a significant share of direct retail operations, and a low gold hedging ratio, is well-positioned to fully capitalize on the upside elasticity provided by rising gold prices.