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Thoughts on Luk Fook (590 HK)? High insider ownership, 45% payout ratio, ample cash, has traded below book value. Benefitted from HK opening up to Chinese tourism in the 2000's with ROE's of 20-30% during 2007-2015. It's has somewhat of a moat, having the lowest SGA expenses as a percent of revenues of all the Cantonese jewellers. Furniture, jewellery, food & gifts appear to be more difficult for e-commerce to disrupt. It looks interesting under $20.
Thoughts on Luk Fook (590 HK)? High insider ownership, 45% payout ratio, ample cash, has traded below book value. Benefitted from HK opening up to Chinese tourism in the 2000's with ROE's of 20-30% during 2007-2015. It's has somewhat of a moat, having the lowest SGA expenses as a percent of revenues of all the Cantonese jewellers. Furniture, jewellery, food & gifts appear to be more difficult for e-commerce to disrupt. It looks interesting under $20.