Core Viewpoint - Luk Fook Holdings is a leading jewelry retailer in Hong Kong and mainland China, with a multi-brand matrix and a significant retail presence globally, despite facing revenue declines in FY2025 [1][4]. Financial Performance - For FY2025, the company reported a revenue of HKD 13.34 billion, a year-on-year decrease of 13.0%, and a net profit attributable to shareholders of HKD 1.1 billion, down 37.8% year-on-year [1]. - The company’s inventory of gold and platinum/jewelry was valued at HKD 5.46 billion and HKD 5.28 billion, respectively, reflecting increases of 22.9% and 3.0% year-on-year due to rising gold prices [1]. Business Segmentation - In FY2025, the company’s revenue from retail, wholesale, and brand businesses was HKD 11.03 billion, HKD 1.41 billion, and HKD 0.90 billion, with year-on-year changes of -13.5%, -8.8%, and -12.6%, respectively [2]. - The revenue distribution was 82.7% from retail, 10.5% from wholesale, and 6.8% from brand business, with profit margins of 9.3%, 1.0%, and 69.2% respectively [2]. Geographic Performance - Revenue from mainland China and Hong Kong/Macau was HKD 5.27 billion and HKD 8.07 billion, with year-on-year changes of -0.2% and -19.6%, respectively [2]. - The average revenue per store was HKD 1.66 million in mainland China and HKD 7.47 million in Hong Kong [2]. Brand Strategy - The company has developed a multi-brand matrix including Luk Fook Jewelry, King Fook, and others, catering to various consumer segments [3]. - As of FY2025, the core brand Luk Fook Jewelry had 2,805 stores globally, and the company plans to launch new product lines and enhance brand promotion through celebrity endorsements [3]. Expansion Plans - As of March 2025, the company operated 3,287 stores across 11 countries and regions, with plans to open 50 new overseas stores over the next three years [4]. - The company aims to increase its presence in the mainland market through diverse store styles and e-commerce channels, leveraging collaborations with celebrities and IP partnerships [4]. Profit Forecast - The company is expected to see a steady recovery in performance from FY2026 onwards, with projected net profits of HKD 1.52 billion, HKD 1.73 billion, and HKD 1.93 billion for FY2026 to FY2028, representing year-on-year growth of 39%, 13%, and 12% respectively [4].
六福集团(00590.HK)：中高端港资黄金珠宝品牌 同店显著回暖+出海拓展新空间