Core Viewpoint - Citigroup's report indicates that the significant acceleration in fixed-price gold product growth will positively impact the profitability of Luk Fook Holdings (00590), predicting trends such as accelerated same-store sales growth and improved profit margins. The stock is rated "Buy" with a target price of HKD 35.2 [1] Group 1: Sales Performance - Luk Fook's same-store sales growth for the third fiscal quarter ending December showed strong performance, with a 31% increase in mainland franchise stores and a 16% increase in Hong Kong, Macau, and overseas markets, aligning with Citigroup's expectations [1] - Although the same-store sales growth for mainland self-operated stores was 7%, which fell short of expectations, it only accounts for about 10% of the group's revenue, thus having a limited impact [1] - The same-store sales growth from the beginning of this month until the 7th outperformed the third fiscal quarter, exceeding Citigroup's expectations, indicating a positive outlook for the upcoming Lunar New Year sales season [1] Group 2: Management Insights - Management noted that despite gold prices reaching a new high in December, consumers have gradually adapted to the high gold price environment, resulting in minimal impact on sales [1] - Following the implementation of a new gold value-added tax policy in mainland China, the price gap between products in Hong Kong, Macau, and mainland China has widened, coupled with the appreciation of the Renminbi, which is favorable for the Hong Kong and Macau markets [1] - The management remains optimistic about the significant growth potential in overseas markets and plans to allocate more resources for expansion, maintaining the target of adding approximately 20 new stores by the fiscal year 2026 [1]
花旗：料六福集团春节销售前景良好 评级“买入”