HK Stock Market Move | LUK FOOK HOLD (00590) surged by over 6%, with an expected full-year net profit increase of over 80%. If the gold price stabilizes in the future, valuation repair can be expected.

LUK FOOK HOLD (00590) rose more than 6%, as of the time of reporting, it has increased by 5.88% to 22.7 Hong Kong dollars, with a turnover of 36.2306 million Hong Kong dollars. On the news front, LUK FOOK HOLD recently announced that it expects the annual net profit for the year ending March 31, 2026 to increase by about 80% to 90% compared to the same period last year. This is mainly due to the rise in gold prices, effective product differentiation and sales strategies driving increased sales of priced jewelry products, as well as operational leverage, which has helped to improve profitability and significantly increase overall profits. Cinda commented that the company's FY2026 performance has seen a high growth, and with expectations of stabilization in gold prices, valuation repair can be anticipated. The bank believes that if gold prices can stabilize in the future, it will benefit the overall market sentiment in mainland China; and as the new value-added tax policy for gold in mainland China is implemented, the price difference between the markets in China, Hong Kong and Macau will widen. Coupled with the continuous support of tourism and entertainment flows, it is expected to attract more consumers to purchase gold products in the Greater China region and the future retail performance in this market is expected to continue to improve.