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小摩:维持六福集团“增持”评级 目标价降至30港元

Komo: Maintaining Lukfook Group's “Accumulation” Rating, Target Price Reduced to HK$30

新浪港股 ·  11/30/2023 10:35

According to a research report released by J.P. Morgan Chase, it continues to expect that Lukfook Group (00590) will benefit from the increase in the return of tourists from mainland China and maintain its “increased holdings” rating, but due to the weak market atmosphere, the target price was lowered from HK$31 to HK$30. The Group's results for the first half of fiscal year 2024 ended at the end of September this year, which is in line with the favorable earnings announcement issued earlier. Management said that it has benefited from the recovery of the Hong Kong and Macao retail markets and the greater contribution of franchised stores in mainland China, and predicted that sales and profits in fiscal year 2024 will surpass pre-epidemic levels.

Furthermore, the Lukfook Group maintained its guidelines for opening new stores, with a target of net increase of 300 Lukfook stores and 50 other brand stores in mainland China by fiscal year 2024. Considering Lukfook's high sales in Hong Kong and Macau, and due to its strong cash flow and prudent capital expenditure plan, the bank believes that Lukfook's annual dividend payout ratio has potential to increase further. It predicts that sales and profit for the second half of the fiscal year will increase by 21% and 32% year-on-year, and the net profit margin is expected to continue to expand.

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