Summary of the Conference Call for Luk Fook Holdings Company Overview - **Company**: Luk Fook Holdings - **Fiscal Year**: April to March - **Current Fiscal Year**: 2026 Key Points Industry Performance - **Overall Growth**: Q4 (January to March) is expected to exceed Q3 growth, with strong same-store sales in Hong Kong, Macau, and overseas markets, particularly driven by a significant increase in same-store sales in Hong Kong exceeding 15% due to VAT adjustments [2][3] - **Main Markets**: - **Hong Kong**: Same-store sales growth was 15% in Q3 and significantly higher in January-February 2026, driven by local consumption and increased tourist spending [3][4] - **Macau and Overseas**: Same-store sales growth of 22% in Macau and 11% overseas in Q3, with continued strong performance into January-February 2026 [3][4] - **Mainland China**: Retail performance was flat in January-February 2026 compared to Q3, affected by the timing of the Lunar New Year [4] Financial Performance - **Profit Growth**: Expected profit growth to significantly outpace revenue growth for the fiscal year, with a strong performance in Q4 anticipated [2][10] - **Gold Inventory Hedging**: The company maintains a 25% hedging ratio on gold inventory, benefiting from rising gold prices, while 75% of unhedged positions have seen profit from price increases [2][11] - **Sales Impact from Gold Price Fluctuations**: Recent sharp declines in gold prices have historically led to increased sales, with potential for sales to double or triple during such periods [5][6] Strategic Initiatives - **Store Expansion**: Plans to open 50 new stores over three years, with a focus on overseas markets, while closing 200 underperforming stores in mainland China [2][9] - **Product Development**: Introduction of upgraded diamond-inlaid versions of the ice diamond series and new IP collaborations, such as "Tang Palace Night Banquet," which has already achieved a 3% sales share [11][12] Pricing Strategy - **Flexible Pricing Mechanism**: The company adjusts prices of fixed-price gold products based on gold price fluctuations, with recent price increases of about 20% in January 2026 and subsequent reductions due to recent price drops [2][14] - **Consumer Behavior**: Observations indicate a shift in consumer purchasing behavior, with increased interest in investment gold bars, particularly in Hong Kong, where their sales share rose from 20% to 35% [3][5] Market Dynamics - **Local vs. Tourist Spending**: The contribution of local consumers in Hong Kong has increased, with mainland tourists' spending dropping from 60% pre-pandemic to 30-40% currently [8][12] - **Store Performance**: Despite closing underperforming stores, overall performance has improved, indicating a strategic shift towards more profitable operations [9][10] Future Outlook - **Positive Projections**: The company remains optimistic about achieving double-digit revenue and profit growth in the upcoming fiscal year, with expectations of continued strong performance in the Hong Kong and overseas markets [12][13] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting the company's performance, market dynamics, and future growth strategies.

Group 1 - The core viewpoint of the article indicates that despite a slowdown in sales in the mainland China market for Luk Fook Holdings, the company is expected to see accelerated same-store sales growth in the first two months of the year due to strong investment demand for gold in Hong Kong, Macau, and overseas markets, driven by increased tourist numbers [1] - Citigroup's report suggests that while same-store sales growth in mainland China is expected to remain flat for self-operated and authorized stores, the overall sales growth will benefit from the strong demand for gold [1] - The report also highlights that although the sales of investment gold may dilute profit margins, this impact could be offset by a faster increase in gold prices, which may lead to increased hedging losses in the second half of the year and potentially slow down the upward trend in gold prices, negatively affecting future profit margins [1] Group 2 - Citigroup has downgraded Luk Fook Holdings' net profit forecasts for the fiscal years 2026 to 2028 by 13%, 9%, and 7% respectively [1] - The target price for Luk Fook Holdings has been reduced from HKD 35.2 to HKD 32.8 [1] - As of the report, Luk Fook Holdings' stock has dropped over 4%, trading at HKD 26.5 with a transaction volume of HKD 102 million [1]

Core Viewpoint - The stock of Luk Fook Holdings (00590) has dropped over 4%, currently trading at HKD 26.5, with a transaction volume of HKD 102 million [1] Group 1: Sales Performance - Sales in the mainland China market are slowing down, with same-store sales growth for self-operated and authorized stores expected to remain flat in the first two months [1] - However, strong investment demand for gold in Hong Kong, Macau, and overseas markets, along with increased tourist numbers, is expected to accelerate same-store sales growth in the first two months of this year [1] Group 2: Profitability and Forecast - Investment gold sales may dilute gross margins, but this impact could be offset by a faster increase in gold prices [1] - It is anticipated that strong gold prices will lead to increased hedging losses in the second half of the year, potentially further slowing the upward trend in gold prices, which could negatively affect future gross margins [1] - Citigroup has downgraded Luk Fook Holdings' net profit forecasts for the fiscal years 2026 to 2028 by 13%, 9%, and 7% respectively, and has reduced the target price from HKD 35.2 to HKD 32.8 [1]

Group 1 - Citi has downgraded the net profit forecasts for Luk Fook Holdings (00590) for the fiscal years 2026 to 2028 by 13%, 9%, and 7% respectively, and reduced the target price from HKD 35.2 to HKD 32.8 while maintaining a "Buy" rating due to low valuation [1] - The report indicates that Chow Tai Fook (01929) is expected to have a similar profit margin outlook but is at a disadvantage compared to Luk Fook due to lower exposure to the strong sales in the Hong Kong market [1] - Citi's investment preference ranking is Old Pawn Gold (06181) > Luk Fook > Chow Tai Fook [1] Group 2 - Although sales in the mainland China market for Luk Fook are slowing, same-store sales growth for self-operated and authorized stores is expected to remain flat in the first two months [1] - Driven by strong investment demand for gold in Hong Kong, Macau, and overseas markets, same-store sales growth for the group is expected to accelerate in the first two months of this year [1] - While investment gold sales may dilute gross margins, this impact could be offset by a faster increase in gold prices, leading to increased hedging losses in the second half of the year and potentially slowing the upward trend in gold prices, negatively affecting future gross margins [1]

Core Viewpoint - Citigroup has downgraded the profit forecasts for Luk Fook Holdings (00590) for the fiscal years 2026 to 2028 by 13%, 9%, and 7% respectively, and has reduced the target price from HKD 35.2 to HKD 32.8, while maintaining a "Buy" rating due to low valuation [1] Group 1: Company Performance - Luk Fook Holdings is experiencing a slowdown in sales in the mainland China market, with same-store sales growth for self-operated and authorized stores expected to remain flat in the first two months [1] - However, the company anticipates an acceleration in same-store sales growth in the first two months of this year, driven by strong investment demand for gold in Hong Kong, Macau, and overseas markets, as well as increased tourist numbers [1] - The sales of investment-type gold may dilute gross margins, but this impact could be offset by a faster increase in gold prices [1] Group 2: Market Comparison - Citigroup suggests that Chow Tai Fook (01929) is likely to have a similar profit margin outlook as Luk Fook, but is at a disadvantage due to lower exposure to the strong Hong Kong market [1] - The preferred investment ranking by Citigroup is as follows: Lau Po Gold (06181) > Luk Fook > Chow Tai Fook [1] Group 3: Future Outlook - It is expected that strong gold prices will lead to increased hedging losses in the second half of the year, which may further slow down the upward trend in gold prices and negatively impact future gross margins [1]

花旗发表研报指，虽然六福集团在内地市场销售放缓，预计内地自营店和授权店在内的同店销售增长首 两月大致持平。受香港、澳门及海外市场对黄金的强劲投资需求及旅客量带动，今年首两月集团的同店 销售增长将加速。虽然投资型黄金销售会摊薄毛利率，但其影响可能被更快的金价上涨所抵销。该行下 调六福集团2026至2028财年(各年3月底止)净利润预测13%、9%及7%，并将目标价从35.2港元降至32.8 港元，基于估值不高，维持"买入"评级。花旗的投资首选排序为老铺黄金>六福>周大福。 ...

Summary of LUK FOOK Holdings Conference Call Company Overview - **Company**: LUK FOOK Holdings - **Industry**: Jewelry Retail, specifically focusing on gold and related products Key Points Industry Dynamics - The adjustment of the value-added tax (VAT) in mainland China has led to an 8% increase in gold costs, widening the price gap between Hong Kong/Macau and mainland China from over 10% to over 20% [2][4] - This price disparity has driven mainland tourists to purchase gold jewelry in Hong Kong, resulting in a significant improvement in same-store sales growth in Hong Kong for Q4 of fiscal year 2026, outperforming the previous quarter's growth of 15% [2][4] Financial Performance - For the first half of fiscal year 2026, retail revenue from the Hong Kong and Macau markets accounted for over 50% of total revenue, contributing approximately 70% to profits [2][7] - The gross margin for the second half of fiscal year 2026 is expected to exceed that of the first half, driven by rising gold prices and the FIFO (First In, First Out) effect from inventory [2][9] - The gross margin for gold products is approximately 30%, while the margin for priced jewelry is close to 37% [2][14] Market Strategy - The company is shifting its product strategy to a "market-oriented" approach, enhancing differentiation through co-creation with suppliers and increasing the proportion of proprietary designs [2][11] - The wholesale business has seen a significant increase, with revenue and profit both achieving approximately 2x growth in the first half of fiscal year 2026 [2][10] Consumer Behavior - There is a trend towards heavier weight gold products (over 70% of sales) outperforming fixed-price products (over 10% of sales), driven by optimistic investor expectations regarding gold prices and increased investment behavior [3][16] - The consumer base in Hong Kong now includes a stronger local presence alongside mainland tourists and an increasing number of overseas tourists, contributing to a more robust market [8][19] Future Outlook - The company plans to open over 50 new stores in the next two years, with a focus on overseas markets where single-store sizes are comparable to Hong Kong and significantly larger than mainland China [2][18] - The investment payback period for overseas stores is estimated to be 1-2 years, indicating a strong potential for profitability [2][18] Risk Management - The company maintains a low hedging ratio of about 25%, reflecting a positive long-term outlook on gold prices [2][13] - Pricing adjustments are automated in Hong Kong and overseas markets, while the mainland still relies on manual processes, leading to slower price adjustments [2][14] Additional Insights - The company’s wholesale revenue structure has shifted, with a significant portion now coming from centrally supplied products, enhancing overall profitability [2][10] - The gross margin contribution from retail profits and gold price fluctuations is approximately 20%, with gold price changes contributing a significant portion to overall profitability [15][16] This summary encapsulates the key insights from the conference call, highlighting the company's strategic direction, market performance, and future growth potential in the jewelry retail industry.

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2026年2月28日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 六福集團(國際)有限公司 呈交日期: 2026年3月2日 I. 法定/註冊股本變動 FF301 第 1 頁 共 10 頁 v 1.2.0 FF301 II. 已發行股份及/或庫存股份變動及足夠公眾持股量的確認 1. 股份分類 普通股 股份類別 不適用 於香港聯交所上市 (註1) 是 證券代號 (如上市) 00590 說明 已發行股份（不包括庫存股份）數目 庫存股份數目 已發行股份總數 上月底結存 587,107,850 0 587,107,850 增加 / 減少 (-) 本月底結存 587,107,850 0 587,107,850 足夠公眾持股量的確認(註4) | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00590 ...

截至月份: 2026年1月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 六福集團(國際)有限公司 呈交日期: 2026年2月5日 I. 法定/註冊股本變動 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00590 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 800,000,000 | HKD | | 0.1 | HKD | | 80,000,000 | | 增加 / 減少 (-) | | | | | | | HKD | | | | 本月底結存 | | | 800,000,000 | HKD | | 0.1 | HKD | | 80,000,000 | 本月底法定/註冊股本總額： ...

Group 1 - The core viewpoint of the article is that Zhongyin International has identified Luk Fook Holdings (00590) as a top pick in the industry, raising its target price to HKD 35.9 [1] - Despite recent fluctuations in gold prices, the firm expects strong demand for gold jewelry in the first quarter of this year, driven by wealth effects from the stock market and a more accommodative monetary environment [1] - The current market landscape is anticipated to produce two significant winners: high-end retailers capable of supporting high premiums, exemplified by Lao Pu Gold (06181), and retailers with a strong market presence in Hong Kong and Macau, which have seen a notable increase in store traffic since the rise in gold value-added tax in November 2025 [1]