CICC: Raise the target price of Luk Fook Group (00590.HK) to 24.22 Hong Kong dollars, maintain the "outperform" rating.

According to the Zhitong Finance and Economics APP, Zhongjin released a research report stating that considering the continuous improvement in terminal sales of Luk Fook Group (00590.HK), the FY26 EPS forecast was raised by 13% to 2.52 Hong Kong dollars, and the FY27 EPS forecast was introduced at 2.97 Hong Kong dollars. The current stock price corresponds to 8/7 times the FY26/27 P/E ratio, maintaining an outperform industry rating. Considering the increase in the industry valuation center, the target price was raised by 46% to 24.22 Hong Kong dollars, corresponding to 10/8 times the FY26/27 P/E ratio, with a 21% upside potential compared to the current stock price. Luk Fook Group announced its FY25 performance, which met the expectations of the bank, with a revenue decline of 13% year-on-year and a net profit attributable to the parent company declining by 38% to 1.1 billion Hong Kong dollars. The company plans to distribute a final dividend of 0.55 Hong Kong dollars per share, corresponding to a full-year dividend payout ratio of 59%.