Is Luk Fook Holdings (International) Limited's (HKG:590) Recent Stock Performance Tethered To Its Strong Fundamentals?

Simply Wall St.

Sep 06

Most readers would already be aware that Luk Fook Holdings (International)'s (HKG:590) stock increased significantly by 37% over the past three months. Given the company's impressive performance, we...

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Given the company's impressive performance, we...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/retail/hkg-590/luk-fook-holdings-international-shares/news/is-luk-fook-holdings-international-limiteds-hkg590-recent-st\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Luk Fook Holdings (International) Limited's (HKG:590) Recent Stock Performance Tethered To Its Strong Fundamentals?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Luk Fook Holdings (International) Limited's (HKG:590) Recent Stock Performance Tethered To Its Strong Fundamentals?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-09-06 07:17 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/hk/retail/hkg-590/luk-fook-holdings-international-shares/news/is-luk-fook-holdings-international-limiteds-hkg590-recent-st><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Most readers would already be aware that Luk Fook Holdings (International)'s (HKG:590) stock increased significantly by 37% over the past three months.   Given the company's impressive performance, we...</p>\n\n<a href=\"https://simplywall.st/stocks/hk/retail/hkg-590/luk-fook-holdings-international-shares/news/is-luk-fook-holdings-international-limiteds-hkg590-recent-st\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"00590","symbol_name":"六福集团","start_time":0,"source_url":"https://simplywall.st/stocks/hk/retail/hkg-590/luk-fook-holdings-international-shares/news/is-luk-fook-holdings-international-limiteds-hkg590-recent-st","article_id":"2565518996","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/4444000-choice1-main-header/1585186667721"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/hk/retail/hkg-590/luk-fook-holdings-international-shares/news/is-luk-fook-holdings-international-limiteds-hkg590-recent-st","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2565518996","pubTimestamp":1757114243,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Most readers would already be aware that Luk Fook Holdings (International)'s (HKG:590) stock increased significantly by...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"00590":"六福集团","BK1601":"香港本地股","BK1224":"专卖店","BK1545":"奢侈品股","BK1502":"双十一","BK1602":"香港零售股"},"translate_title":"六福控股（国际）有限公司（HKG：590）近期的股票表现是否与其强劲的基本面有关？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"00590":1},"content_text":"Most readers would already be aware that Luk Fook Holdings (International)'s (HKG:590) stock increased significantly by 37% over the past three months.   Given the company's impressive performance, we decided to study its financial indicators more closely as a company's financial health over the long-term usually dictates market outcomes.      Particularly, we will be paying attention to Luk Fook Holdings (International)'s  ROE today.    Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital.  Put another way, it reveals the company's success at turning shareholder investments into profits. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.Advertisement How To Calculate Return On Equity?  The formula for return on equity is:  Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Luk Fook Holdings (International) is:8.1% = HK$1.1b ÷ HK$13b (Based on the trailing twelve months to March 2025). The 'return' refers to a company's earnings over the last year.  Another way to think of that is that for every HK$1 worth of equity, the company was able to earn HK$0.08 in profit.  See our latest analysis for Luk Fook Holdings (International)   What Is The Relationship Between ROE And Earnings Growth?  Thus far, we have learned that ROE measures how efficiently a company is generating its profits.  Based on how much of its profits the company chooses to reinvest or \"retain\", we are then able to evaluate a company's future ability to generate profits.  Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features.  Luk Fook Holdings (International)'s Earnings Growth And 8.1% ROE   When you first look at it, Luk Fook Holdings (International)'s ROE doesn't look that attractive.   Although a closer study shows that the company's ROE is higher than the industry average of 5.6% which we definitely can't overlook.   This certainly adds some context to Luk Fook Holdings (International)'s moderate 9.5% net income growth seen over the past five years.  That being said, the company does have a slightly low ROE to begin with, just that it is higher than the industry average.  Therefore, the growth in earnings could also be the result of other factors.  For example, it is possible that the broader industry is going through a high growth phase, or that the company has a low payout ratio.     We then compared Luk Fook Holdings (International)'s net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 4.6% in the same 5-year period.   SEHK:590 Past Earnings Growth September 5th 2025 Earnings growth is a huge factor in stock valuation.  What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price.  By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await.    One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Luk Fook Holdings (International) is trading on a high P/E or a low P/E, relative to its industry.    Is Luk Fook Holdings (International) Making Efficient Use Of Its Profits?    With a three-year median payout ratio of 48% (implying that the company retains 52% of its profits), it seems that Luk Fook Holdings (International) is reinvesting efficiently in a way that it sees respectable amount growth in its earnings and pays a dividend that's well covered.     Besides, Luk Fook Holdings (International) has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders.      Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 45%.   However, Luk Fook Holdings (International)'s ROE is predicted to rise to 10% despite there being no anticipated change in its payout ratio.      Conclusion    Overall, we are quite pleased with Luk Fook Holdings (International)'s performance.      Specifically, we like that it has been reinvesting a high portion of its profits at a moderate rate of return, resulting in earnings expansion.       That being so, the latest analyst forecasts show that the company will continue to see an expansion in its earnings.     To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"}}}