HK Stock Market Move | LUK FOOK HOLD (00590) further increases by over 4%, with same-store sales growing by 10% in the second quarter. Citigroup expects the mid-term profit margin trend to exceed expectations.

LUK FOOK HOLD (00590) rose more than 4%, as of the time of writing, it increased by 4.39%, to HK$26.16, with a turnover of HK$195.47 million. On the news front, LUK FOOK HOLD announced that the group's second quarter overall retail value, retail revenue, and same-store sales all exceeded the first quarter, increasing by 18%, 15%, and 10% respectively. Retail value and revenue in Hong Kong, Macau, and overseas markets all rose by 13%; same-store sales also improved to double-digit growth, reaching +11%. Citigroup released a research report stating that LUK FOOK HOLD's sales data for the second quarter of the 2026 fiscal year was below the bank's expectations; however, after discussing with management following the earnings release, Citigroup believes that the profit margin for the first half of the 2026 fiscal year is better than expected. Citigroup expects LUK FOOK HOLD to announce its interim results in late November, with revenue growth of 18%, gross margin expanding by 2.3 percentage points to 35% compared to previous years, general and administrative expenses, and sales decreasing by 2.4 percentage points to 18.9%, offsetting losses increasing to HK$400 million, and net profit increasing by 31%.