HK jeweller Luk Fook sinks to 20-mth low on weak outlook

Emperor Watch & Jewellery

29/11/2018 02:52

** Shares of jewellery retailer Luk Fook Holdings
International Ltd  0590.HK  slump as much as 10.4 pct to
HK$22.50, the lowest since March 2017, as it says the Sino-U.S.
trade dispute and a weaker yuan have started to affect sales and
sentiment  
    ** Stock later trims losses to HK$22.70, still down 9.6 pct,
and heads for worst day since Jan. 18
    ** The Hong Kong-based retailer posts 27.9 pct growth in H1
profit with same-store sales rising 21.4 pct in Hong Kong and
Macau and 0.7 pct in mainland China  urn:newsml:reuters.com:*:nFWN1Y20Z6
    ** It says same-store sales growth (SSSG) in Hong Kong and
Macau started to see a decline since the second half of October
and saw a single-digit drop for the period from October to first
3 weeks of November. China was a double-digit drop. 
    ** Nomura downgrades Luk Fook to "netural" from "buy" and
cuts target price to HK$26.40 from HK$36.20, saying it trims Luk
Fook's full-year SSSG forecast to 10 pct from 12 pct for Hong
Kong, and to 1 pct for China from 4 pct to reflect the weak
market 
    ** Jefferies says it will review Luk Fook's price target as
same-store sales growth for the quarter-to-date turned negative
after strong H1 amid adverse impact on consumer sentiment from
the trade war and yuan depreciation 
    ** As of the last close, the stock has fallen 25.2 pct so
far this year
    ** Bigger rival Chow Tai Fook Jewellery  1929.HK  falls 5.4
pct to the lowest in six weeks, and smaller competitor Emperor
Watch & Jewellery  0887.HK  stumbles 5.2 pct to the lowest since
September

 (Reuters Messaging: donny.kwok.thomsonreuters.com@reuters.net)