Luk Fook Holdings (International) Ltd. (590) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

MINISO Group Holding Ltd.

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Luk Fook Holdings (International) Ltd.

China MeiDong Auto Holdings Ltd.

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Zhongsheng Group Holdings Ltd.

CK Hutchison Holdings Ltd.

Star Plus Legend Holdings Ltd.

China Yongda Automobiles Services Holdings Ltd.

Why is Luk Fook Holdings (International) Ltd. ?

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 45.86

Poor long term growth as Net Sales has grown by an annual rate of 12.24% and Operating profit at 23.19% over the last 5 years

Flat results in Sep 25

OPERATING CASH FLOW(Y) Lowest at HKD 1,864.3 MM
INTEREST(HY) At HKD 41.23 MM has Grown at 47.84%
DEBT-EQUITY RATIO (HY) Highest at 14.41 %

With ROE of 8.78%, it has a Fair valuation with a 1.08 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 53.66%, its profits have fallen by -29.2%

Market Beating Performance

The stock has generated a return of 53.66% in the last 1 year, much higher than market (Hang Seng Hong Kong) returns of 8.25%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Luk Fook Holdings (International) Ltd. should be less than 10%
Overall Portfolio exposure to Retailing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Luk Fook Holdings (International) Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Luk Fook Holdings (International) Ltd.

-100.0%

19.18

40.24%

Hang Seng Hong Kong

8.25%

0.41

19.93%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.24%

EBIT Growth (5y)

23.19%

EBIT to Interest (avg)

45.86

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

0.05

Sales to Capital Employed (avg)

0.89

Tax Ratio

22.59%

Dividend Payout Ratio

58.72%

Pledged Shares

Institutional Holding

ROCE (avg)

13.17%

ROE (avg)

10.57%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.08

EV to EBIT

8.05

EV to EBITDA

6.14

EV to Capital Employed

1.08

EV to Sales

1.12

PEG Ratio

Dividend Yield

4.52%

ROCE (Latest)

13.40%

ROE (Latest)

8.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -25.67% (YoY

NET SALES(Q)

At HKD 6,843.38 MM has Grown at 25.6%

OPERATING PROFIT MARGIN(Q)

Highest at 20.21 %

PRE-TAX PROFIT(Q)

At HKD 1,013.73 MM has Grown at 81.94%

NET PROFIT(Q)

At HKD 830.88 MM has Grown at 80.25%

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at HKD 1,864.3 MM

INTEREST(HY)

At HKD 41.23 MM has Grown at 47.84%

DEBT-EQUITY RATIO (HY)

Highest at 14.41 %

CASH AND EQV(HY)

Lowest at HKD 871.37 MM

Here's what is working for Luk Fook Holdings (International) Ltd.

Net Sales

At HKD 6,843.38 MM has Grown at 25.6%

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Operating Profit Margin

Highest at 20.21 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

At HKD 1,013.73 MM has Grown at 81.94%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (HKD MM)

Net Profit

At HKD 830.88 MM has Grown at 80.25%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is positive

Net Profit (HKD MM)

Raw Material Cost

Fallen by -25.67% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at HKD 292.51 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (HKD MM)

Here's what is not working for Luk Fook Holdings (International) Ltd.

Interest

At HKD 41.23 MM has Grown at 47.84%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (HKD MM)

Operating Cash Flow

Lowest at HKD 1,864.3 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (HKD MM)

Debt-Equity Ratio

Highest at 14.41 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Cash and Eqv

Lowest at HKD 871.37 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents