Tuesday, January 19, 2021
Martin Hennecke

Luk Fook lags peers as net falls 41pc to $291m
Jeweler Luk Fook (0590) yesterday said its interim net profit fell by 41.3 percent to HK$291 million. The news came after competitor Chow Tai Fook (1929) earlier reported a profit of HK$2.23 billion, up 45.6 percent year-on-year. Luk Fook declared an interim dividend and special dividend of HK$0.225 and HK$0.275 per share, respectively. Basic earnings per share were HK$0.5, down by 41.2 percent year-on-year. Due to the pandemic, revenue decreased by 47 percent to HK$3.3 billion compared with the same period last year. Same store sales growth for Hong Kong and Macau slumped by 70.2 percent, while that of mainland China was 30.1 percent. Operating profit declined by 41.4 percent to HK$387 million while overall gross profit margin increased by 3.3 percentage points to 33.2 percent due to high gold prices. Meanwhile, luxury goods retailer Dickson Concepts International (0113) said its net profit for the six months ending September rose 12.13 percent to HK$133.45 million. The company declared an interim dividend of HK$0.08. Basic earnings per share were HK$0.339. The company's turnover dropped by 42.7 percent to HK$981.1 million from a year ago. Its turnover in Hong Kong slumped by 47.4 percent and its retail operations in the city incurred substantial negative cash flows. The decline was offset by a substantial increase in profit contribution from the investment portfolio, a doubling of profit in Taiwan, profit contribution from China and tight cost control, the company said. The company is "extremely pessimistic" about the retail climate in Hong Kong. It estimated the jobless rate in Hong Kong may increase with the arrival of the fourth wave of Covid-19, and with the second tranche of the Employment Support Scheme from the government set to end in November. Meanwhile, the local retail climate may further weaken as visitors will not return to Hong Kong in the foreseeable future, it said. In Taiwan, its revenue jumped by more than 100 percent in the first half thanks to the improved consumer segment. The business in mainland China turned from loss making to profit contributing, the company said in the interim report. The group's investment portfolio contributed a net profit of HK$62.2 million, up 427 percent year-on-year. In other news, Global Brands (0787) yesterday said its half-year loss expanded by 37 percent to HK$122 million year on year with no interim dividend declared. Its revenue dived by 46.1 percent to HK$290 million due to the pandemic.

Previous news : Budget shortfalls expected to hit $50b


Register  Forget Password
Advanced Search
© 2021 The Standard, The Standard Newspapers Publishing Ltd.
Home | Business | Metro | Focus | Opinion | Markets | World | Sports | Entertainment | Monday Money | Property | Macau | Weekend