DBS: Upgrade Six Fortune Group (00590.HK) target price to HKD 21.03, rating "buy".

According to the Wisdom Financial APP, DBS released a research report stating that Luk Fook Group (00590.HK) benefited from potential growth in gold demand during uncertain times. Retail revenue in Mainland China increased by 1% year-on-year in the quarter ending in March, while it dropped by 11% in the Hong Kong and Macau region, showing a significant improvement compared to the previous quarter. The bank mentioned that Luk Fook's light asset model is conducive to long-term expansion, especially in lower-tier cities in Mainland China. Due to the possibility of higher-than-expected losses from Luk Fook's gold hedging, DBS has lowered its net profit forecast for the current and next fiscal years by 11% and 10% respectively. They maintain a "buy" rating and extend their valuation basis to the fiscal year 2026, with a target price of 21.03 Hong Kong dollars based on a target P/E ratio of 8.