Luk Fook 0590

Luk Fook 0590

Postby winston » Tue Jun 03, 2008 2:47 pm

Not vested. From UOB-Kay Hian

Luk Fook (590.HK; BUY/Target: HK$8.80).

Luk Fook’s retail sales in Hong Kong and Macao surged 42% yoy in Apr 08 with a 20% SSS growth.

Management attributed the exceptional performance in Apr 08 to the Golden Week holidays (4-6 Apr 08) in mainland China, enticing mainland Chinese to visit Hong Kong for the long weekend.

Following the strong showing in Apr 08, Retail sales for its stores in Kong and Macao rose 27% yoy during 1-21 May 08 with 7% same-store sales growth. The performance in May 08 was affected by the shortened Golden Week holidays in May and the tragic event in Sichuan.

Retail sales for its own stores in mainland China (currently 11 outlets) soared 160-170% with SSS growth of 60-70% in Apr 08 and 1-21 May 08. We expect Luk Fook’s FY08 net profit to grow by 23% yoy to HK$244m.

The stock is trading at 9x FY09 PE with a 5% dividend yield.
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Re: Luk Fook 0590

Postby persistentone » Mon Aug 17, 2009 8:21 am

Not too shabby at all. I wonder why this stock has continued to trade near book value.

Does anyone show the capital expenditures numbers for the last few years? Reuter's version of the cash flow is showing no data for the capex line on the cash flow.
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Re: Luk Fook 0590

Postby winston » Mon Aug 17, 2009 8:41 am

Hi persistentone,

I think you can find the numbers on the HKEX website: www.hkex.com.hk

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Re: Luk Fook 0590

Postby winston » Fri Jan 14, 2011 4:02 pm

Not vested

DJ MARKET TALK: Luk Fook Off 1.6%; UOB Tips 60% Upside This Year

1540 [Dow Jones] Luk Fook (0590.HK) is off 1.6% at HK$28.45; this appears to be normal profit-taking after the stock leapt 6.3% to end at all-time high Thursday.

"We still believe the stock will have at least 60% upside" in 2011 in view of the accelerating growth momentum for demand for jewellery in Hong Kong and China and the attractive valuation, says UOB KayHian.

It adds, Luk Fook's market cap has reached the $2 billion threshold for funds investing in bigger market cap.

"Its stellar track record (net profit soared from HK$96 million in FY06 to HK$532 million in FY10), proven business model and leading brand name are strengthening investors' confidence," UOB says; the house also expects there will be more analyst coverage for the stock, which will further stimulate buying interest.


Source: Dow Jones Newswire
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Re: Luk Fook 0590

Postby winston » Fri Jan 14, 2011 4:07 pm

Not vested

DJ MARKET TALK: CS Starts Luk Fook At Outperform; Target HK$33.80
Jan 5 , 2011


1101 [Dow Jones] STOCK CALL: Credit Suisse starts Luk Fook (0590.HK) at Outperform with HK$33.80 target, based on a "conservative" 0.55X PEG or 17X FY12 P/E.

Thanks to its strong pricing power, Credit Suisse believes Luk Fook is a key beneficiary of accelerating inflation, as it typically sees above-average sales growth and margin improvement.

The house identifies two reasons for some HK-based retailers to trade at premium valuations compared with peers: a profitable China operation and a high proportion of income generated in HK from mainland Chinese shoppers.

"Luk Fook actually fits into both categories, with over 60% of its profit generated directly or indirectly from China." The stock is 4.0% higher at HK$27.00.


Source: Dow Jones Newswire
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Re: Luk Fook 0590

Postby winston » Fri Jan 14, 2011 4:13 pm

Not vested

DJ MARKET TALK: Luk Fook Down 3.0%; Attractive L/T -GuocoCapital
Dec 20, 2010

1121 [Dow Jones] Luk Fook (0590.HK) is down 3.0% at HK$24.65, tracking weakness in HK retail stocks; the stock's recent low after share placement is HK$24.10 (hit Dec. 6) which may act as a near-term support.

Taking into account Luk Fook's higher-than-expected interim earnings and dilution effect from the share placement, GuocoCapital forecasts the company's earnings to grow 44% on-year in FY11 and 20% in FY12 to reach HK$764 million and HK$918 million respectively.

The house says the stock trades at 16.9X FY11 P/E and 15.0X FY12 P/E; it reckons valuation "is still attractive" to long-term investors given robust growth in mainland tourists, rising CNY and uptrend in gold price.

The house keeps Luk Fook at Buy with a 6-month price target HK$30.00.


Source: Dow Jones Newswire
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Re: Luk Fook 0590

Postby winston » Tue Jan 18, 2011 11:17 am

Not vested. From Phillips:-

Risk

The growth of PRC economy can`t reach expectation, which could drag down the consumer confidence.

The significant rebound of USD could reduce demand of gold as a means to hedge risk.

The changes of Hong Kong travel policies could affect the numbers of visitor to HK.

The store expansion couldn`t reach expectation.


Valuation

The latest closed price of 27.90 HKD gives leading PER of 17.86 and 12.58 on expected EPS of FY11 and FY12 which are undervalued to some extent compared to peers listed in HK Exchange.

Considering the favorable growth prospect of Luk Fook, we give it a leading PER of 15 on expected EPS of 2012 which produces our 12-month target price of 33.30 HKD, 19.35% higher than the current price. We rate it BUY initially.
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Re: Luk Fook 0590

Postby winston » Thu Feb 24, 2011 11:28 am

Not vested. At HK$28.45 on Jan 14, 2011 above, they were asking you to buy. Now at HK$20.50, they continue to ask you to buy :lol: :lol:

MARKET TALK: Luk Fook Down 1.2%; But Good Time To Buy - UOB

1107 [Dow Jones] Luk Fook (0590.HK) slides 1.2% at HK$20.50, adding to its 13.5% fall over the past five sessions, as de-facto mainland consumption plays join the collective sector de-rating.

Still, valuations have fallen back (from an all-time high of HK$29.05 hit January) to more reasonable levels, and the psychological HK$20 level may act as an immediate support.

UOB KayHian says "the timing is good" to buy now as the stock has fallen nearly 30% from its peak, with shares (at Wednesday's close) trading at 13X FY11 and 11X FY12 P/Es.

"We expect to see a strong rebound in share price in the next few months and target the stock to double in a year," the house adds.

Source: Dow Jones Newswire
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Re: Luk Fook 0590

Postby Atlas » Fri Feb 25, 2011 11:58 am

:D Well, it would have been worse if they would now advice to sell. :D 30% down in only a few weeks time is impressive. Granted, there was a lot of profit taking pressure after its rise last year. Apart from yesterday (Thursday) short volumes were low and I still like that company and jumped back in this morning.

Btw., yesterday's news:

MARKET TALK: HK Mid-, Small Caps' Selloff Appears Overdone


0800 GMT [Dow Jones] The sharp swing in many of HK's mid- and small-caps suggest their recent steep falls are probably due more to deterioration in sentiment rather than deterioration in fundamentals.

Today's good example of such is SmarTone (0315.HK); the stock falls 5.7% to HK$23.25, a staggering 11.4% intraday swing from a day's high of HK$26.25 after it reported robust 1H earnings yesterday after the market's close. Luk Fook (0590.HK) is down 4.9% at HK$19.74 and it is falling for the 4th straight session for a cumulative loss of 16.7%.

Granted, the prospects of a slower global economic recovery due to oil price spike will hurt company earnings, but the magnitude of share-price decline by a lot of HK firms appears overdone. Nine Dragons Paper (2689.HK) falls 10.0% to HK$8.61 on top of its 5.4% fall Wednesday.
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Re: Luk Fook 0590

Postby Atlas » Fri Feb 25, 2011 12:18 pm

MARKET TALK: HK Small Caps Rally Led By Luk Fook, Melco (Dow Jones News)

Date: 2011/02/25 12:03

1151 [Dow Jones] Recently oversold HK mid- and small-caps are staging a furious rally, with some sectors rebounding much more than the broader market including HK retail stocks, Macau plays and selective China consumption stocks.

Luk Fook (0590.HK) is up 8.2% at HK$21.05 on a hefty volume of HK$195.5 million; Melco International (0200.HK) is 6.2% higher at HK$4.99 and Bosideng (3998.HK) is up 7.4% at HK$2.04.

Still, investors should take note that Luk Fook's rebound comes after a 17.9% sell-down Monday through Thursday. Overall, it remains difficult to make a call if these stocks have bottomed or are merely staging technical rebounds, although on a valuation perspective, Luk Fook is trading at 13.8X and 10.9X this year and next year's earnings based on Thomson Reuters consensus, which appears to be undemanding.

Source: Dow Jones Newswire
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