Luk Fook's stock jumped 4.2% to HK$21.30 following the release of its strongest full-year financial results to date for the fiscal year ended March 31, 2026. The Hong Kong jewellery retailer reported that profit, operating profit and gross profit each reached their highest levels on record.
Revenue expanded almost 30% year-on-year to HK$17.2 billion, a rise the company attributed to solid demand for gold products and a shift in sales mix toward higher-margin fixed-price jewellery items. Profit attributable to equity holders surged nearly 90%, topping HK$2 billion.
The board proposed a sharply increased final dividend of HK$1.02 per share, which the company said represents an increase of more than 85% compared with the prior year. That final dividend brings the full-year payout to HK$1.57 per share, at a 45% payout ratio. The combination of exceptional results and the significantly higher dividend was cited as the twin drivers behind the share-price move.
On the strategic front, Luk Fook confirmed it will re-enter the Singapore retail market with a new flagship store at VivoCity. The opening is presented as part of a three-year strategic plan emphasising international expansion.
Analysis
The results show a pronounced improvement in both top-line growth and profitability metrics, with management electing to return a larger portion of earnings to shareholders via a markedly higher dividend. The company highlighted two operational themes that underpinned the performance: sustained demand for gold products and a favorable shift toward fixed-price items that carry stronger margins. In addition, the Singapore flagship and the stated three-year international growth plan signal a renewed emphasis on expanding its retail footprint outside Hong Kong.
- Market reaction - The stock's intraday move reflected investor focus on both earnings strength and cash returns.
- Operational drivers - Gold demand and margin mix were identified by the company as the main contributors to the revenue and profit gains.
- Strategic direction - The VivoCity store marks a concrete step in executing the company’s three-year plan for overseas expansion.
Summary
Luk Fook posted record profits and revenue for the fiscal year ended March 31, 2026, supported by robust gold demand and a higher-margin product mix. Profit attributable to equity holders rose nearly 90% to above HK$2 billion. The company proposed a final dividend of HK$1.02 per share, lifting the full-year dividend to HK$1.57 per share at a 45% payout ratio. Management also announced the re-entry into Singapore with a VivoCity flagship as part of a three-year international expansion plan.