CICC: Maintains "Outperform" rating on Luk Fook Holdings International Limited (00590.HK) with a target price of HK$30.55, Mainland wholesale performance impressive.

According to the Wisdom Financial APP, CICC released a research report stating that it maintains a "outperform industry" rating on Luk Fook Group (00590.HK) with a target price of 30.55 Hong Kong dollars. The company's revenue increased by 26% year-on-year, and net profit attributable to shareholders increased significantly by 43%, mainly benefiting from the strong growth in wholesale business in mainland China and the increase in the proportion of high-margin priced jewelry, driving gross margin to a historical high of 35%. At the same time, the company actively optimizes its channels, accelerates its overseas expansion, and plans to close stores in mainland China to improve efficiency. Recently, same-store sales achieved double-digit growth, demonstrating a stable growth momentum and profit flexibility.