GLONGHUI, September 26 | Macquarie published a report stating that Lukfook Hong Kong and Macau's business improved and exceeded expectations, raising its earnings for the first half of fiscal year 2024 ending at the end of September. Following a 70% increase in same-store sales in Hong Kong and Macau in the first quarter of fiscal year 2024 ended at the end of June, the Group recorded a stronger momentum in Hong Kong and Macau in July and August. Although the Hong Kong and Macau markets have been affected by bad weather, they have recorded double-digit same-store sales growth so far this month. The bank also believes that same-store sales in the mainland market may have recorded a decline in the number of units recorded in the fiscal year 2024 ending at the end of September. The bank said that as direct management contributions to the Hong Kong and Macau markets continue to rise, the Group's gross margin is expected to remain above 26%. It also expects the company's operating margin for the first half of FY2024 to improve from 11.8% in the second half of FY2023 to 14.3%, driving profit before tax and interest (EBIT) to increase by 31% year-on-year. The bank raised the group's net profit forecasts for the 2024-26 fiscal year by 24.7%, 25.1% and 24.8%, respectively. The target price increased by 12.6% to HK$31.6, and was rated as “outperforming the market”.