Citi Initiates 30-Day Upside Catalyst Watch for LUK FOOK HOLD, Increases Target Price to HKD35.2

The analyst rating from Citi is based on the expectation that LUK FOOK HOLD will announce stronger operational data for the third quarter of FY26 in January. The report highlights the company's strong sales momentum in October and November, which is anticipated to continue into December. Additionally, the adjustment of the value-added tax policy is expected to positively impact the gross profit margin for the second half of FY26 and the first half of FY27. As a result, Citi maintained a Buy rating and raised its target price for the stock.

The analyst rating for LUK FOOK HOLD (00590.HK) is maintained at "Buy" by BOCI due to several positive factors. The company's 1HFY2026 net profit grew by 43% year-over-year, exceeding expectations, which reflects strong performance amid expanded product offerings and a recovery in industry sales. Looking ahead, BOCI anticipates that results will benefit from lower inventory costs, manageable hedging losses, and improved sales performance in the Hong Kong and Macau markets. These factors contribute to the continued upward revision of the company's valuation, leading BOCI to raise its target price to $29.2.

Haitong International issued an "Outperform" rating for LUK FOOK HOLD based on several positive financial indicators and forecasts. The broker anticipates significant growth in net profits for FY2026-2028, projecting $1.578 billion, $1.8 billion, and $1.977 billion, respectively. The company's strong performance in the first half of FY2026, with a 25.6% year-over-year increase in revenue to $6.843 billion and a 33.2% increase in gross profit, supports this positive outlook. Additionally, improvements in profit margins and a substantial operating profit growth of 45.4% year-over-year further bolster the rating. The assigned target price of $40.35, based on a 15x PE ratio for FY2026, reflects the broker's confidence in the company's continued financial strength and growth potential.

The analyst rating from BOCI is based on the belief that the recent stock price correction of gold jewelry retailers is excessive. Despite expecting a mild negative impact on industry profits due to new VAT regulations on gold, BOCI anticipates only a mid-single-digit decline in EPS. They attribute the stock price decline to various factors, including falling gold prices and profit-taking related to US government shutdowns. BOCI remains optimistic about CHOW TAI FOOK and LUK FOOK HOLD, rating both as "Buy" with target prices of $17.8 and $23.8, respectively, and suggests that upcoming interim results may help alleviate investor concerns.