Brief News: Gold prices rise, sales strategy effective, LUK FOOK HOLD forecasts a 50% increase in interim profits
LUK FOOK HOLD issued a profit warning, expecting mid-term revenue for the period ending September to increase by 20% to 30% year-on-year, with profit surging by 40% to 50%. Last year's mid-term revenue was HKD 5.45 billion, with a profit of HKD 417 million. This year, revenue is expected to be between HKD 6.54 billion and HKD 7.09 billion, with profit between HKD 580 million and HKD 675 million. The revenue increase is attributed to successful product differentiation and sales strategies, while the profit increase benefits from rising gold prices and improved operational leverage. LUK FOOK's stock price has risen 74% this year
Jewelry retailer LUK FOOK HOLD (International) Limited (0590.HK) issued a profit warning, expecting mid-term revenue for the period ending September this year to increase by approximately 20% to 30% year-on-year; profit is expected to surge by 40% to 50%.
According to the company's mid-term performance last year, revenue was HKD 5.45 billion, with a profit of HKD 417 million; based on this calculation, this year's revenue is expected to be between HKD 6.54 billion and HKD 7.09 billion, with profit estimated at around HKD 580 million to HKD 675 million.
The company stated that the increase in revenue is mainly due to effective product differentiation and successful sales strategies, which significantly boosted the sales of priced jewelry products. Additionally, the rise in profit is primarily attributed to the increase in gold prices, a higher proportion of sales from priced jewelry products, and operational leverage driving an improvement in profit margins.
LUK FOOK's stock price approached HKD 25 on Friday, rising 74% since the beginning of the year
