Luk Fook Holdings (0590.HK): Solid near term performance with HK market outperforming: Consumer & Leisure Corp Day Takeaways

Research evidence excerpt

Luk Fook Holdings (0590.HK): Solid near term performance with HK market outperforming: Consumer & Leisure Corp Day Takeaways

Equity Research

2 July 2026 | 10:24PM HKT

Luk Fook Holdings (0590.HK): Solid near term performance with HK

market outperforming — Consumer & Leisure Corp Day Takeaways

Xinyu Ruan

+852-2978-7347 | xinyu.ruan@gs.com

Goldman Sachs (Asia) L.L.C.

Michelle Cheng

+852-2978-6631 |

michelle.cheng@gs.com

Bottom line: We hosted Luk Fook’s management at our APAC Consumer & Leisure Molly Dai

Corp Day on Jul 2. Key takeaways include: 1) The company saw >40%/>20% SSSG in +852-3966-4000Goldman Sachs (Asia)| molly.dai@gs.comL.L.C.

Hong Kong and Macau/ML China during Apr-Jun 21. In June, Hong Kong SSSG

further accelerated driven by both onshore customer demand from a wider price gap

and strong demand from local customers, while Macau saw some deceleration with

headwinds from gaming traffic. ML China SSSG decelerated from the strong

performance in May, yet SSSG of fixed priced products remained positive. 2)

Regarding the guidance of DD% yoy growth in both topline and bottom line growth

in FY27, sales growth is expected to be a key driver; operating leverage (1-2pp) and

the absence of hedging losses should help partially offset the margin headwinds

from GPM where management looks for HSD% contraction if gold prices at the end

of FY27 stays the same as FY26. 3) By product, weight-based demand continues to

be strong with gold price correction vs. customer expectation of gold price recovery;

meanwhile, for fixed priced products, differentiated and well-designed products are

still well-accepted by customers. 4) For fixed priced product pricing, Hong

Kong/Macau sees frequent price adjustments benchmarked to gold price movement;