Core Viewpoint - Six福 Group reported strong financial performance for FY26H1, with revenue of HKD 6.84 billion, up 25.6% year-on-year, and net profit of HKD 600 million, up 44.1%, aligning with previous forecasts [1][2] Financial Performance - Revenue breakdown shows significant growth in pricing jewelry, with revenue from gold and platinum products at HKD 4.1 billion, up 11.0%, and pricing jewelry revenue at HKD 2.28 billion, up 67.9%, increasing its share of total sales by 8.8 percentage points to 35.7% [1][2] - Gross margin improved by 2.0 percentage points to 34.7%, reaching a historical high, driven by rising gold prices and operational leverage [2] - The net profit margin increased by 1.1 percentage points to 8.8% due to reduced selling and administrative expenses [2] Market Expansion and Store Strategy - The company operates a total of 3,113 stores globally, with a net closure of 174 stores in FY26H1, primarily in mainland China, while opening 8 new overseas stores, including its first in Vietnam [2] - The company plans to open at least 50 new overseas stores and enter at least 3 new countries from FY26 to FY28 [2] Profit Forecast and Valuation - The profit forecast for FY26-FY28 has been raised by 5%/6%/6% to HKD 1.548 billion, HKD 1.733 billion, and HKD 1.918 billion respectively, reflecting continued positive same-store sales [3] - The target price is set at HKD 35.1, corresponding to a 14 times PE for FY26, maintaining a "buy" rating [3]

Core Viewpoint - The company reported a significant increase in revenue and profit due to effective product differentiation and sales strategies, leading to a 25.6% rise in total revenue to HKD 6.84 billion [1][2]. Financial Performance - Total revenue increased by 25.6% to HKD 6,843,384,000 compared to HKD 5,448,634,000 in the previous year [1]. - Gross profit rose by 33.2% to HKD 2,373,233,000, with an overall gross margin increase of 2.0 percentage points to a historical high of 34.7% [1][2]. - Operating profit increased by 45.4% to HKD 779,648,000, with an operating margin improvement of 1.6 percentage points to 11.4% [1][2]. - Net profit rose by 44.1% to HKD 601,190,000, with a net profit margin increase of 1.1 percentage points to 8.8% [1][2]. - Earnings attributable to equity holders increased by 42.5% to HKD 619,186,000, resulting in a basic earnings per share increase of 41.9% to HKD 1.05 [1][2]. Dividend and Payout - The company declared an interim dividend of HKD 0.55 per share, maintaining the same dividend as the previous year, with a payout ratio of 52% [2]. Sales Performance - Retail revenue increased by 12.8% to HKD 5,255,286,000, accounting for 76.8% of total revenue [2]. - Wholesale revenue surged by 190.6% to HKD 1,117,398,000, representing 16.3% of total revenue [2]. - Same-store sales growth was recorded at +7.7%, with significant improvements in the mainland market [5][6]. Market Expansion - The company opened 8 new overseas stores and entered the Vietnamese market for the first time [1]. - The company plans to focus on overseas market expansion, market-oriented products, and operational efficiency optimization as part of its new three-year corporate strategy starting from the 2025/26 fiscal year [6].

证券研究报告 六福集团 (590 HK) 港股通 定价产品及海外拓展贡献增长亮点 2025 年 11 月 28 日│中国香港 可选消费 六福集团公布 FY26H1 业绩（2025 年 4-9 月）：收入为 68.4 亿港元，同比 +25.6%；净利润为 6.0 亿港元，同比+44.1%，符合此前业绩预告（收入同 比+20-30%，净利润同比+40-50%）。集团有效的产品差异化和销售策略带 动定价首饰收入快速增长，产品结构优化、金价上升助推毛利率创历史新高， 叠加经营杠杆效应释放，净利润增速表现亮眼。公司拟派中期股息 0.55 港 元/股，派息比率为 52%，持续积极分红回馈股东。此外，10 月 1 日至 11 月 21 日，集团中国内地、中国港澳及海外市场同店均实现双位数增长，其 中，中国内地市场较 FY26Q2 明显改善，有望延续进一步向好势头。维持 "买入"评级。 得益于有效的产品差异化策略，定价首饰产品收入高增 1）分产品看，FY26H1 黄金及铂金产品营收 41.0 亿港元/同比+11.0%，定 价首饰产品营收 22.8 亿港元/同比+67.9%，占整体销售额的比重同比提升 8.8pct 至 35. ...

CORPORATE PRESENATION 1H FY2025/26* Interim Results 企业简报 2025/26上半财年*业绩 * Hereafter refers to as "1H FY2026" 往后称为「2026上半财年」 1 1 CONTENT 目录 1H FY2025/26 FINANCIAL HIGHLIGHTS 2025 /26上半财年财务亮点 FINANCIAL REVIEW 财务回顾 FUTURE PLANS AND STRATEGIES 未来计划与策略 BRANDING 品牌推广策略 SUSTAINABILITY 可持续性 OPEN FORUM 公开讨论 CORE COMPETENCES 核心竞争优势 COMPANY PROFILE 公司简介 APPENDICES 附录 2 1H FY2026 FINANCIAL HIGHLIGHTS 2026上半财年财务亮点 3 1H FY2026 FINANCIAL HIGHLIGHTS 2026上半财年财务亮点 | Revenue 收入 | | | Basic Earnings per Share 每股基本盈利 | | | | -- ...

Summary of LUK FOOK Holdings Conference Call Company Overview - **Company**: LUK FOOK Holdings - **Fiscal Year**: 2025 Key Financial Metrics - Overall gross margin increased by 5.9 percentage points to 33.1% [2] - Gross profit grew by 5.8% to HKD 4.4 billion [2] - Total operating expenses rose by 13.7% to HKD 2.6 billion, leading to an increase in operating expenses as a percentage of revenue by 4.6 percentage points to 19.6% [2][5] - Total revenue for FY2025 was HKD 13.3 billion, a decrease of 12.9% year-on-year [3] - Operating profit fell by 33% to HKD 1.4 billion, with an operating profit margin of 10.6% [3] - Earnings per share decreased by 37.9% to HKD 1.87 [3] - Total dividend for the year was HKD 1.1 per share, with a payout ratio of 59% [3] Store Network Changes - Global net decrease of 296 stores, with a net reduction of 317 LUK FOOK brand stores [6] - Net increase of 21 LUK FOOK jewelry specialty stores [6] Market Performance Hong Kong, Macau, and Overseas Markets - Revenue from Hong Kong, Macau, and overseas markets declined by approximately 20% to over HKD 8 billion, accounting for over 60% of total revenue [2][8] - Operating profit from this region decreased by 7.7% to approximately HKD 1.1 billion [8] - Same-store sales in the Hong Kong and Macau markets fell by 25% [4] Mainland China Market - Revenue from Mainland China remained stable at approximately HKD 5.3 billion, but operating profit dropped by 40% to HKD 517 million [10] - Retail business revenue in Mainland China grew by 10% to HKD 3.2 billion, but profit fell by over 70% [11][15] Product Performance Gold and Platinum Products - Sales of gold and platinum products amounted to HKD 8.8 billion, a decrease of 15%, but gross profit increased by 16% [12] - Gross margin for gold and platinum products improved by 7.1 percentage points to over 26% [12] Jewelry Sales - Jewelry sales totaled HKD 3.6 billion, down 7.66%, with a gross margin of 39.4%, a decline of 3 percentage points [13] Strategic Initiatives - A new three-year plan focusing on overseas market expansion, with plans to enter at least three new overseas markets and increase overseas store count by approximately 50 [4][20] - Anticipated net increase of about 50 stores in Mainland China and 20 stores overseas in FY2026 [4] Operational Efficiency - Inventory turnover days increased by over 100 days due to rising inventory and declining revenue [7] - Return on equity (ROE) decreased by 5.4 percentage points to 8% [7] ESG and Market Outlook - Significant progress in ESG initiatives, receiving 40 ESG-related awards [21] - Anticipated continued rise in gold prices due to central bank purchases and geopolitical factors, which may positively impact gross margins despite potential sales declines [21] Future Expectations - Same-store sales growth is expected to achieve single-digit growth in FY2026 due to a relatively low base in FY2025 [31] - The company is actively seeking to enhance its product offerings and brand competitiveness through innovation and strategic partnerships [30][32]

Core Viewpoint - The performance of Luk Fook Holdings in the fiscal year 2025 highlights the challenges faced by gold and jewelry companies during periods of rapidly rising gold prices, with significant sales declines impacting retail revenue despite improved gross margins due to higher gold prices [1][29]. Financial Performance - Luk Fook Holdings reported a revenue of HKD 13.34 billion for the fiscal year 2025, a year-on-year decline of 12.9%, and an annual profit of HKD 1.068 billion, down 39.3% [2][15]. - The company had previously issued a profit warning on June 17, predicting a nearly 40% decline in annual profit, which led to a 13% drop in stock price over three trading days [2][29]. - Following the earnings announcement, the stock initially rose by 9% but closed with a gain of 4.36% as the actual results aligned with the profit warning [2][29]. Market Comparison - Compared to newly listed competitors like Chow Tai Fook and other peers, Luk Fook's stock performance post-earnings was less impressive, although it outperformed some other gold and jewelry companies [5][29]. Gold Price Impact - The average spot gold price reached HKD 600 per gram in fiscal year 2025, a 28.5% increase year-on-year, negatively affecting consumer sentiment and leading to a 15% decrease in sales of gold and platinum products by weight, with an estimated sales volume drop of 34% [7][29]. Store Network and Sales - The total number of global stores decreased to 3,287, a net reduction of 296 stores or 9% year-on-year, with a significant decline in the number of franchise stores in mainland China [10][29]. - Retail revenue, which is the core income source for the company, fell by 13.5% to HKD 11.03 billion, accounting for 82.7% of total revenue [16][29]. Operational Efficiency - Luk Fook's inventory turnover days exceeded 400, indicating significant inventory management challenges compared to competitors like Chow Tai Fook [23][29]. - The company’s gross profit margin improved by 5.9 percentage points to 33.1%, while its operating profit margin decreased to 10.6% [25][29]. Financial Strategy - The company maintains a conservative financial strategy with a low debt-to-asset ratio of 26.57% and a cautious expansion approach, resulting in a total asset turnover rate below 80% [27][29]. - The net asset return rate for Luk Fook was 8.43%, significantly lower than Chow Tai Fook's 22.69%, reflecting the need for improvements in capital efficiency [29].

Financial Performance - Revenue reached HK$13,341 million[8] - Operating profit was HK$1,412 million, a decrease of 33.3% year-over-year[8,10] - Profit attributable to equity holders amounted to HK$1,100 million, down 37.8%[8] - Adjusted operating profit (excluding gold hedging losses) was HK$1,904 million, up 14.8%[8] - Basic earnings per share were HK$1.87, a decrease of 37.9%[8] Dividends - Annual dividend per share was HK$1.10[8] - Dividend payout ratio was 59%[8] - Proposed final dividend per share is HK$0.55[8] Key Financial Indicators - Inventories increased to HK$10,739 million, a rise of 12.2%[18] - Net cash/ (borrowing) was -HK$205 million, a decrease of 135.9%[18] - Average inventory turnover days increased to 427 days[18] Revenue Breakdown - Revenue from Hong Kong, Macau & Overseas was HK$8,068 million[22] - Revenue from Mainland China was HK$5,273 million[22] - Retailing revenue was HK$11,031 million[25] - Wholesaling revenue was HK$1,406 million[25] - Licensing revenue was HK$904 million[25]

Financial Data and Key Metrics Changes - Revenue reached HKD 13.3 billion, a 12.9% decrease compared to the same period last year, primarily due to a decline in sales of gold products caused by high gold prices [5] - The group's profit for the year decreased by 39.3% to HKD 1 billion, with basic earnings per share decreasing by 37.9% to HKD 1.87 [6] - Proposed final dividend of HKD 0.55 per share, with an annual dividend of HKD 1.1 per share and a dividend payout ratio of 59% [6] - Total operating expenses increased by 13.7% to around HKD 2.6 billion, leading to an increase in the ratio of total operating expenses to revenue by 4.6 percentage points to 19.6% [7][27] Business Line Data and Key Metrics Changes - Retailing revenue decreased by 13.5% to HKD 11 billion, accounting for 82.7% of the group's total revenue, with segment profit decreasing by 17.7% to HKD 1 billion [13] - Licensing income decreased by 12.6% to HKD 904 million, accounting for 6.8% of the group's total revenue [15] - Wholesaling revenue decreased by 8.8% to HKD 1.4 billion, accounting for 10.5% of the group's total revenue, with segment profit decreasing to HKD 14 million [14] Market Data and Key Metrics Changes - Revenue from Hong Kong, Macau, and overseas markets decreased by 19.6% to HKD 8.07 billion, accounting for 60.5% of the group's revenue [10] - Revenue from the Mainland market decreased by 0.2% to RMB 5.3 billion, accounting for 59.5% of the group's total revenue [11] - Retailing revenue in Mainland increased by 10.4% to HKD 3.1 billion, accounting for 59.9% of Mainland market's total [21] Company Strategy and Development Direction - The group has set a new three-year corporate strategy focusing on overseas market expansion, market-oriented products, and operational efficiency enhancements [29] - Plans to enter three more countries and establish 50 new overseas shops within the next three years [30] - Commitment to developing e-commerce business and optimizing its own platforms to sustain growth in e-commerce revenue [30] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about medium to long-term business prospects in Mainland and plans to continue expanding in the Mainland market [31] - The group expects same store sales growth across all regions to be in the double digits for FY 2026 [63] - Management noted that high gold prices may affect sales performance, but increased profit margins will help mitigate the impact of declining sales [42] Other Important Information - The average international gold price increased nearly 30% year on year, affecting consumer sentiment and leading to a 15% decrease in sales of gold and platinum products by weight [16] - The group aims to net 50 shops in the Mainland market in FY 2026 and is optimistic about growth potential in overseas markets [31] Q&A Session Summary Question: Can you elaborate on the recovery in sales momentum for Mainland China? - Management noted strong performance in fixed price gold jewelry products due to new collections and effective promotions, with a new ambassador contributing positively to sales [49][50] Question: What is the ASP trend for fixed price gold products? - The contribution of fixed price gold products to overall retailing revenue increased from 33% to 54%, with expectations for continued growth [56][68] Question: What is the guidance for same store sales growth and profitability? - Management expects double-digit growth in same store sales across all regions for FY 2026, with a stable gold hedging ratio maintained [63][61]