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Luk Fook Holdings (0590) Fair Value & Analysis

Consumer Cyclical · HK · Market cap HK$13.0B

LF Luk Fook Holdings 0590 · HK
PriceHK$24.64
Fair ValueHK$65.14
Upside+164.4%
Quality64/100
Mixed Growth
Solidly profitable · 11.9% net margin
Low debt · generates free cash flow
Ranks above peers (14/15)
Moderate moat 63/100
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Evidence: High Range HK$35.60 – HK$95.82 Share as image

Fair value as of: Aug 2, 2026

From 24 valuation models · updated today

Fair value updated Aug 2, 2026, revised from HK$69.02 to HK$65.14 (−5.6%) since Jul 2, 2026. Share price +11.3% over the past month.

A solid business, and the price sits 164% below our fair value.

What matters now

  • The price is below even our cautious bear case (HK$35.60). The market is more pessimistic than our downside scenario.
  • The model range is unusually wide (HK$35.60 to HK$95.82). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid quality (64/100) at a price below fair value, the discount is the argument here, not the business quality.
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Price vs Fair Value (5 years)

HK$33.48 HK$12.21 Fair Value HK$65.14 Mar 2021 Jul 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 2, 2026.

How to read this chart

60‑month range HK$12.21 – HK$33.48 · fair‑value band HK$35.60 – HK$95.82 · the HK$24.64 price screens below the HK$65.14 fair value. Dashed = 300-day average. As of Aug 2, 2026.

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Analysis

Luk Fook Holdings (0590) currently trades at HK$24.64, while our model-based Fair Value estimate is HK$65.14, implying the stock looks roughly 164.4% undervalued today. We read business quality at 64/100 (solid quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Luk Fook Holdings generated revenue of HK$17.2B at a net margin of 11.9%. Revenue grew 31.3% year over year. It earns a return on equity of 14.4%. Net debt stands at HK$2.4B. Fundamentals as of Aug 2, 2026

Our scenario range runs from HK$35.60 (bear case) to HK$95.82 (bull case); at HK$24.64, the current price sits below that range. The share trades about 29% below its 52-week high and 29% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at 4% fair-value upside, at 164%, 0590 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF HK$20.22 HK$31.61 HK$50.40 80
Residual Income HK$24.70 HK$31.03 HK$75.06 76
Rev-Margin DCF HK$42.86 HK$76.31 HK$118.02 74
All 24 models by family
DCF Models
FCF DCF HK$20.22 HK$32.30 HK$52.56 38
Owner Earnings HK$56.85 HK$95.80 HK$161.13 31
5Y Revenue Exit HK$42.86 HK$77.65 HK$125.11 39
5Y EBITDA Exit HK$49.61 HK$91.19 HK$143.12 41
5Y P/E Exit HK$41.21 HK$74.35 HK$111.77 38
10Y Revenue Exit HK$33.22 HK$63.59 HK$110.22 36
10Y EBITDA Exit HK$39.34 HK$73.36 HK$124.90 37
10Y P/E Exit HK$33.84 HK$61.21 HK$99.34 35
Earnings-Based
Graham-Dodd HK$23.69 HK$99.56 HK$135.83 54
Lynch FV HK$25.27 HK$36.10 HK$46.93 50
PEG = 1.0 HK$25.27 HK$36.10 HK$46.93 46
EPV HK$49.29 HK$56.87 HK$63.51 59
Multiples
P/E Multiple HK$52.27 HK$69.69 HK$87.11 63
P/S Multiple HK$44.43 HK$59.24 HK$74.05 58
P/B Multiple HK$44.43 HK$59.24 HK$74.05 55
EV/EBIT HK$81.23 HK$107.06 HK$132.88 53
EV/EBITDA HK$69.73 HK$91.72 HK$113.70 54
EV/Revenue HK$55.05 HK$77.03 HK$99.01 43
Asset-Based
NCAV (Graham) HK$12.79 HK$17.13 HK$25.57 50
Growth DCF
Growth DCF HK$20.22 HK$31.61 HK$50.40 80
Rev-Margin DCF HK$42.86 HK$76.31 HK$118.02 74
Economic Profit
Residual Income HK$24.70 HK$31.03 HK$75.06 76
ROIC Compounder HK$54.78 HK$71.30 HK$92.20 72
Growth Earnings
Growth-Adj P/E HK$41.75 HK$59.64 HK$77.54 68

Widest divergence: DCF Models (HK$73.36) versus Asset-Based (HK$17.13). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) HK$17.2B
Revenue growth (YoY) +31.3%
Net margin 11.9%
Return on equity 14.4%
Free cash flow HK$777M FY2025
P/E ratio 6.4
More key figures
Operating margin 18.3%
EPS growth (YoY) +114%
Net debt HK$2.4B FY2026

Figures from reported company fundamentals · as of Aug 2, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 64/100

Of which business quality 66 · Market factors (momentum, volatility) 50

Profitability 55
Margins and returns on capital today
Quality Growth 87
Are margins and returns improving?
Cashflow 36
Earnings quality: real cash, not paper profit
Fin. Strength 86
Balance sheet, leverage, solvency risk
Investment 65
Disciplined investing over empire-building
Low Volatility 67
Calm price path (market factor)
Momentum 40
Price trend over the last 3–12 months (market factor)
52W Momentum 46
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Luk Fook Holdings (International) Limited, an investment holding company, engages in sourcing, designing, wholesaling, trademark licensing, and retailing various gold and platinum jewelry, and gem-set jewelry products in Hong Kong and internationally.

Full company description

Luk Fook Holdings (International) Limited, an investment holding company, engages in sourcing, designing, wholesaling, trademark licensing, and retailing various gold and platinum jewelry, and gem-set jewelry products in Hong Kong and internationally. The company offers ring and pair rings, necklaces, pendants, earrings, bangles and bracelets, charms, figurines, accessories, and other products of various materials comprising diamond, gold, platinum, jadeite, gemstone, pearl, and silver materials. It also provides authentication of gemstones; gold bullion trading services; management services to group companies and wholesale distribution of gold and jewelry products; and software development and services related to internet. In addition, the company wholesales polished diamonds; offers trademark licensing, brand building, promotion of quality examination services, as well as provides handling services on diamond subcontracting and diamonds export custom services; and engages in electronic retailing of gold and jewelry products, as well as provides management services. Luk Fook Holdings (International) Limited was founded in 1991 and is headquartered in Sha Tin, Hong Kong.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

Luk Fook Holdings reported revenue of HK$17.2B in FY2026 versus HK$11.7B in FY2022, a compound +10.0%/yr. Reported net income was HK$2.0B in FY2026, compounding +10.1%/yr from FY2022.

Growth Quality 86/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2026)
HK$17.2B
Latest YoY
+29.0%
Avg. growth/yr (3Y)
+12.8%
Avg. growth/yr (5Y)
+14.2%
Avg. growth/yr (27Y)
+9.6%
Revenue +10.0%/yr
FY22 HK$11.7B
FY23 HK$12.0B
FY24 HK$15.3B
FY25 HK$13.3B
FY26 HK$17.2B
Net income +10.1%/yr
FY22 HK$1.4B
FY23 HK$1.3B
FY24 HK$1.8B
FY25 HK$1.1B
FY26 HK$2.0B

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Cite: Fair Value Calculator (2026). "Luk Fook Holdings Fair Value". https://www.fairvalue-calculator.com/stock/0590

Peer Group

Luxury Goods · 138 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 64 · Top 25%
Fair Value upside +164% · Top 25%
Return on equity (TTM) 14% · Above median
Return on assets 8% · Above median
Net margin (TTM) 12% · Top 25%
Operating margin (TTM) 18% · Top 25%
Revenue growth 31% · Above median
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.01× · Lower than median

Valuation Multiples vs Luxury Goods median · lower = cheaper

P/E (TTM) 6.4× · Cheaper than 75% of peers
P/B 0.87× · Cheaper than median
P/S (TTM) 0.76× · Cheaper than median
P/FCF 2.1× · Cheaper than median
EV/EBITDA 3.8× · Cheaper than 75% of peers
PEG 0.43× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 / 11
FUTURE 100 / 41
PAST 57 / 40
HEALTH 100 / 99
DIVIDEND 0 / 36

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Luxury Goods stocks, each showing price versus our Fair Value estimate (as of Aug 2, 2026).

Stock Price Fair Value vs Fair Value
Compagnie Financière Richemont SA CFR CHF 197.40 CHF 117.30 -41%
Christian Dior SE DIO €455.40 €502.30 +10%
Kering SA KER €248.50 €60.61 -76%
Tapestry, Inc TPR $140.73 $19.95 -86%
Chow Tai Fook Jewellery Group 1929 HK$11.82 HK$12.28 +4%
The Swatch Group UHRN CHF 40.95 CHF 21.48 -48%
Prada S.p.A 1913 HK$38.62 HK$65.74 +70%
Pandora A/S PNDORA kr 779.40 kr 1,424 +83%
Laopu Gold Co 6181 HK$360.60 HK$667.35 +85%
Brunello Cucinelli S.p.A BC €80.32 €42.69 -47%

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Frequently asked questions

Is Luk Fook Holdings (0590) overvalued or undervalued?
As of Aug 2, 2026, our model estimates a fair value of HK$65.14 versus a price of HK$24.64, about +164% (undervalued).
What is the fair value of 0590?
Our model-based fair value for Luk Fook Holdings is HK$65.14 (as of Aug 2, 2026), built from audited fundamentals. The current price is HK$24.64.
What is the quality score of 0590?
Luk Fook Holdings has a Quality Score of 64/100, measuring profitability, growth and balance-sheet strength from non-valuation factors.
What is the revenue of Luk Fook Holdings (0590)?
Luk Fook Holdings reported trailing-twelve-month revenue of about HK$17.2B (latest available figure, as of Aug 2, 2026).
What is the net profit margin of 0590?
The net profit margin of Luk Fook Holdings is about 11.9%, meaning it keeps roughly 11.9% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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