HK Stock Market Move | LUK FOOK HOLD(00590) rose more than 3% in the afternoon, exceeding expectations in the third quarter. Management plans to continue expanding overseas markets.

LUK FOOK HOLD (00590) rose more than 3% in the afternoon, up 2.99% at HK$28.28 at the time of publication, with a trading volume of HK$27.7886 million. CICC has released a research report stating that LUK FOOK HOLD exceeded expectations in the third quarter of fiscal year 2026, ending in December of last year. Retail sales for LUK FOOK HOLD increased by 26% year-on-year, with mainland China, Hong Kong, Macau, and overseas retail sales increasing by 26%, 20%, respectively. Sales growth in mainland China's self-operated/branded stores, Hong Kong, Macau, and overseas regions increased by 7%/31%, 16% respectively. Considering the improvement in industry sentiment leading to a valuation increase, the target price has been raised by 12% to HK$34.31. Citi believes that LUK FOOK HOLD management believes that despite the record high gold prices in December, consumers have gradually adapted to the high gold price environment, resulting in minimal impact on sales. Management believes that the price difference between Hong Kong, Macau, and mainland China products has widened after the implementation of the new VAT policy for gold in mainland China, coupled with the appreciation of the Renminbi, which is beneficial to the Hong Kong and Macau markets. They also maintain an optimistic attitude towards the huge growth potential in overseas markets, planning to invest more resources in expansion and keeping the target of adding approximately 20 stores in fiscal year 2026 unchanged.