Luk Fook Holdings (International) (0590) H2 2026 earnings summary

Executive summary

• Achieved record highs in revenue, gross profit, operating profit, and net profit for FY2026, driven by robust demand for gold products and effective product differentiation strategies.

• Revenue rose 29.0% to HK$17,205M, gross profit climbed 42.9% to HK$6,310M, and profit attributable to equity holders increased 86.0% to HK$2,046M.

• Operating profit surged 87.5% to HK$2,648M, with operating margin up 4.8 percentage points to 15.4%.

• Net margin improved by 3.7 percentage points to 11.7%.

• Proposed final dividend of HK$1.02 per share, annual dividend HK$1.57 per share, payout ratio 45%.

Financial highlights

• Basic EPS increased 86.1% to HK$3.48; EBITDA rose 61.7% to HK$3,257M; adjusted EBITDA up 77.2% to HK$2,852M.

• Net margin improved to 11.7% from 8.0% year-over-year.

• Total inventories increased 36.1% to HK$14,617M; net cash position improved to HK$1,834M.

• Return on equity rose to 13.6%, and return on total assets to 9.3%.

• Debt-to-equity ratio increased to 47.8% from 36.0%.

Outlook and guidance

• Three-year strategy (FY2026–FY2028) focuses on overseas market expansion, market-oriented products, and operational efficiency.

• Maintains strong sales momentum into FY2027, with SSS growth over 40% in Hong Kong, Macao, and overseas, and over 20% in Mainland.

• Plans to enter at least 2–3 new countries/regions and net addition of 30–50 overseas shops by FY2027.

• Expected to achieve network expansion targets ahead of schedule.

• Cautiously optimistic on Mainland prospects amid government stimulus, with continued investment in e-commerce and product innovation.