Industrial: LUK FOOK HOLD (00590) is given a "buy" rating for the rapid recovery of the China, Hong Kong, and Macau markets.

Industrial released a research report, covering LUK FOOK HOLD (00590) for the first time, with a "hold" rating. It is expected that the net profit attributable to shareholders for FY26/FY27/FY28 will be 15.72/17.28/18.91 billion Hong Kong dollars respectively, with a year-on-year increase of +42.9%/+9.9%/+9.4%. As of the closing price on January 29th, the PE ratio corresponding to the expected EPS for FY2027 is 11x, with a potential dividend yield of 5.2%, making the valuation attractive. The bank stated that the long-term trend of gold prices is upwards, and the consumption peak season during the festival is expected to continue to boost the consumption of gold jewelry, with better performance in the Chinese, Hong Kong, and Macau markets. LUK FOOK HOLD has a high proportion of business in China, Hong Kong, Macau, and overseas, a high proportion of direct sales business, and a low proportion of gold hedging, which will fully benefit from the rise in gold prices.