Luk Fook Holdings International (00590.HK) saw its stock price surge 5.14% in the pre-market trading session on Friday, following the release of its impressive financial results for the fiscal year 2024/25 (FY2025).
The jewelry retailer reported a significant 12.9% increase in revenue, reaching HK$13.341 billion for FY2025. More notably, the company's adjusted net profit, excluding gold hedging losses, soared by 37.8% to HK$1.1 billion. This robust performance was further underscored by a 37.9% rise in basic earnings per share (EPS) to HK$1.87.
Investors were particularly encouraged by Luk Fook's improved profitability, with the gross margin expanding by 5.9 percentage points to 33.1%. The company also demonstrated effective cost management, reducing its total operating expenses to revenue ratio by 4.6 percentage points to 19.6%. Furthermore, Luk Fook proposed a final dividend of HK$0.55 per share, bringing the total annual dividend to HK$1.1 per share with a 59% payout ratio. The strong financial results and generous dividend policy likely contributed to the positive market reaction, driving the stock's pre-market surge.
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