Hong Kong Stock Alert | LUK FOOK HOLD (00590) Surges Over 4% as Institutions Forecast Retailers to Benefit from Rising Gold Prices, Company Listed as Top Pick

Stock News
Sep 05

LUK FOOK HOLD (00590) surged over 4%, rising 4.53% to HK$26.78 with a trading volume of HK$97.737 million as of press time. On the news front, BOC International released a research report stating that gold prices reached new highs above US$3,500 per ounce in early September this year, which may make the market more bullish on gold. According to feedback from gold jewelry retailers, consumers are beginning to adapt to higher gold prices and are more willing to purchase gold jewelry products. The firm expects the industry may enter a positive cycle again, with improved store productivity potentially driving store expansion. At the company level, BOC International expects retailers may also benefit from rising gold prices as their gross margins could expand, although the significant gross margin expansion seen last year and in the first half of this year is unlikely to repeat due to higher inventory costs. Among the companies covered with "Buy" ratings, the firm expects LUK FOOK HOLD to be more sensitive to the current bull market cycle due to its higher exposure to self-operated retail and Hong Kong, Macau, and overseas markets, listing it as a preferred stock.

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