00590 Overview

Company Announcement: Luk Fook Hold announced the grand opening of its new jewellery store in Central Phuket, Thailand, on February 14, as part of its expansion strategy in Southeast Asia.

Market Strategy: The CEO highlighted Thailand's thriving tourism and shopping sectors, indicating plans to open a total of 11 shops by 2025 and to implement a multi-brand strategy to effectively target the local market.

Future Expansion Plans: The Group aims to further enhance its presence in key Thai cities such as Bangkok, Samut Prakan, and Chiang Mai, focusing on optimizing its retail network and strengthening brand coverage.

Current Market Performance: As of the latest data, Luk Fook Hold's stock experienced a slight decline, with short selling activity reported at $1.77 million and a ratio of 20.451%.

Market Performance: The HSI dropped 484 points (1.8%) to 26,547, with significant declines in financial stocks like HSBC and HKEX, while total half-day turnover reached $128.406 billion.

Chinese Inflation: China's inflation rate for January was reported at 0.2%, lower than the previous 0.8% and below the forecast of 0.4%.

Gold Prices Decline: Gold prices fell below $5,000 per ounce, negatively impacting several gold-related stocks, which saw declines ranging from 3.6% to 5.2%.

AI Stocks Surge: AI-related stocks experienced significant gains, with MINIMAX-WP rising 9.4% and KNOWLEDGE ATLAS surging 11.9% following the launch of new programming models.

Strong Sales Performance: LUK FOOK HOLD has started 2026 positively, with strong sales in Hong Kong and Macau driven by increased consumption from Chinese tourists and a favorable base.

Optimistic Outlook: The company's management is optimistic about the gross profit margin reaching a new high in the second half of 2026, supported by good performance in gold jewelry consumption.

Analyst Rating: DBS Research has given LUK FOOK HOLD a Buy rating and raised its target price from HKD33.87 to HKD36.74, reflecting confidence in the company's growth.

Market Conditions: Despite uncertainties in gold prices and market volatility, demand for LUK FOOK HOLD's products remains healthy, indicating resilience in the market.

Gold and Silver Prices Surge: Gold futures in New York reached a historic high of USD5,080.1 per ounce, while silver futures peaked at USD107.925, reflecting significant increases in precious metal prices.

Jewelry Stocks Performance: Hong Kong-listed jewelry stocks, particularly LAOPU GOLD, experienced substantial gains, with expectations of strong sales during the Spring Festival due to high gold prices and promotional activities.

Gold Miners Thrive: Gold mining companies like ZIJIN MINING and ZHAOJIN MINING saw their stock prices rise significantly, benefiting from the increasing gold prices and high trading volumes.

Short Selling Activity: Various stocks in the jewelry and mining sectors showed notable short selling ratios, indicating a mix of investor sentiment and market speculation amidst the rising prices of gold and silver.

Gold and Silver Prices Surge: Gold prices are nearing US$5,000 per ounce, with spot gold last quoted at US$4,944.08, while spot silver reached US$98.64 per ounce, reflecting significant increases in both metals.

Impact on Jewelry Stocks: The rise in gold prices has led to increased market expectations for gold product prices, positively affecting jewelry stocks in Hong Kong, particularly LAOPU GOLD, which saw a notable increase in its share price.

Tenant Terminations at 11 SKIES: Numerous tenants, including Chow Tai Fook, Uniqlo, and LUK FOOK HOLD, have terminated their leases at the 11 SKIES mall near Hong Kong International Airport, amid significant short selling activity.

Impact of Terminal 2 Delays: Delays in the construction of the airport's Terminal 2 are expected to postpone the opening of 11 SKIES to at least mid-year, further affecting its prospects.

NWD's Response: New World Development (NWD) has not commented on the tenant terminations, while the Airport Authority Hong Kong is considering alternative operational arrangements with other developers.

Market Activity: The short selling ratios for Chow Tai Fook and other associated companies indicate a lack of confidence in their performance, with Chow Tai Fook experiencing a short selling ratio of 47.384%.