Citi Selects LAOPU GOLD as Leading Choice in China's Jewelry Market, Anticipates Continued Triple-Digit Growth
Market Outlook for LAOPU GOLD: A survey indicates that LAOPU GOLD is expected to maintain its triple-digit growth despite a recent pullback in gold prices, with limited impact on sales according to Citi's research report.
Competitive Landscape: The high-end gold jewelry market is expanding rapidly, which restricts the ability of new entrants to compete with LAOPU GOLD.
Analyst Recommendations: Citi has identified LAOPU GOLD as a top pick in China's jewelry sector, assigning a target price of HKD1,119 and a Buy rating.
Short Selling Data: As of February 3, 2026, LAOPU GOLD has a short selling amount of $77.18 million, with a ratio of 11.790%.
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LAOPU GOLD Rises Over 4% Following Positive Profit Forecast; 2025 Net Profit Anticipated to Increase Approximately 2.3 Times
Positive Profit Alert: LAOPU GOLD issued a profit alert, expecting last year's net profit to increase by 2.26-2.33 times, leading to a significant rise in stock price.
Sales and Revenue Surge: The company anticipates a year-over-year sales increase of approximately 216-227% and revenue growth of around 217-229%, with expected figures around RMB31-32 billion and RMB27-28 billion, respectively.
Adjusted Net Profit Expectations: Non-IFRS adjusted net profit is projected to rise by 233-240% year-over-year, reaching around RMB5-5.1 billion, while net profit is expected to swell to RMB4.8-4.9 billion.
Market Activity: Following the profit announcement, LAOPU GOLD's stock traded at HKD666, up 4.23%, with a turnover of HKD442 million and significant short selling activity reported.
LAOPU GOLD Projects Last Year's NP to Increase by 2.26-2.33 Times, Reaching RMB 4.8-4.9 Billion
Positive Profit Alert: LAOPU GOLD has issued a positive profit alert for the year ending December 31, 2025, anticipating significant growth in sales and revenue.
Sales and Revenue Growth: The company expects sales to increase by approximately 216-227% year-over-year, reaching around RMB31-32 billion, while revenue is projected to rise by about 217-229% year-over-year, totaling around RMB27-28 billion.
CICC Publishes HSI Constituent Adjustments Alongside Weighting Change Forecasts and Passive Capital Data (Table)
Stock Performance Overview: Several stocks, including CMOC, LAOPU GOLD, and CATL, experienced declines in their share prices, with notable short selling activity and varying inflows of capital.
Short Selling Ratios: High short selling ratios were observed in stocks like LAOPU GOLD (40.445%) and JD-SW (39.739%), indicating significant bearish sentiment among investors.
Changes in HSI Constituents' Weightings: Adjustments in the weightings of certain stocks in the Hang Seng Index (HSI) were noted, with some stocks like Tencent and Alibaba seeing increases, while HSBC and CLP Holdings experienced decreases.
Outflows and Inflows: The report highlighted both inflows and outflows of capital for various stocks, with HSBC facing a significant outflow of USD 503 million, contrasting with inflows for Tencent and CATL.
Daiwa Increases Year-End Gold Price Prediction to RMB1,290 per Gram, Maintains Buy Rating for LAOPU GOLD (06181.HK)
Gold Price Forecast: Daiwa raised its year-end gold price forecast from RMB1,200 to RMB1,290 per gram due to Middle East tensions and market expectations for higher prices.
LAOPU GOLD Price Adjustment: LAOPU GOLD implemented a significant price hike of about 29% on its products, marking its largest single price adjustment, with increases ranging from 20-30%.
Market Response: Despite the price increase, Citi expects limited impact on LAOPU GOLD's sales, while Daiwa maintains a positive outlook and keeps its target price at $880.
Profit Margin Projections: The company's average product gross profit margin is projected to reach 39.4% for 2026, as it passes on cost pressures to its core gold products.
Citi Anticipates Minimal Effect on Sales from LAOPU GOLD (06181.HK) Price Increase; Target Price Set at $1,119
Price Increase: LAOPU GOLD raised prices by an average of 27% on February 28, marking the largest increase in history, driven by higher gold prices and a goal to maintain a gross profit margin above 40%.
Market Impact: The price hike may reduce demand from price-sensitive customers, but peers are expected to follow suit in March, potentially stabilizing the market.
Promotional Activities: Upcoming events like the Tmall Goddess Festival and SKP malls' anniversary sale are anticipated to help alleviate sales pressure and support demand recovery.
Analyst Rating: Citi Research rated LAOPU GOLD as a Buy with a target price of $1,119, citing strong earnings prospects from same-store sales growth and new store openings.
G Sachs: LAOPU GOLD (06181.HK) Price Increase Aimed at Safeguarding GPM; Buy Rating Maintained with Target Price of $1,128
Price Increase: LAOPU GOLD raised prices by 20-30%, primarily between 25% and 30%, which was slightly above market expectations, particularly for pure gold products.
Gross Profit Margin (GPM) Goals: The company aims for a 40% GPM by 2026, as the recent price hike helps protect its margins after previously lagging behind gold price increases.
Demand Outlook: Despite concerns about the sustainability of growth post-price increase and the end of promotional periods, strong performance during the January to February peak season is expected to support a solid growth outlook for the first half of 2026.
Broker Rating: Goldman Sachs reiterated a Buy rating on LAOPU GOLD with a target price of HKD1,128, reflecting confidence in the company's future performance.
LAOPU GOLD Rises Over 4% Following Positive Profit Forecast; 2025 Net Profit Anticipated to Increase Approximately 2.3 Times
Positive Profit Alert: LAOPU GOLD issued a profit alert, expecting last year's net profit to increase by 2.26-2.33 times, leading to a significant rise in stock price.
Sales and Revenue Surge: The company anticipates a year-over-year sales increase of approximately 216-227% and revenue growth of around 217-229%, with expected figures around RMB31-32 billion and RMB27-28 billion, respectively.
Adjusted Net Profit Expectations: Non-IFRS adjusted net profit is projected to rise by 233-240% year-over-year, reaching around RMB5-5.1 billion, while net profit is expected to swell to RMB4.8-4.9 billion.
Market Activity: Following the profit announcement, LAOPU GOLD's stock traded at HKD666, up 4.23%, with a turnover of HKD442 million and significant short selling activity reported.
LAOPU GOLD Projects Last Year's NP to Increase by 2.26-2.33 Times, Reaching RMB 4.8-4.9 Billion
Positive Profit Alert: LAOPU GOLD has issued a positive profit alert for the year ending December 31, 2025, anticipating significant growth in sales and revenue.
Sales and Revenue Growth: The company expects sales to increase by approximately 216-227% year-over-year, reaching around RMB31-32 billion, while revenue is projected to rise by about 217-229% year-over-year, totaling around RMB27-28 billion.
CICC Publishes HSI Constituent Adjustments Alongside Weighting Change Forecasts and Passive Capital Data (Table)
Stock Performance Overview: Several stocks, including CMOC, LAOPU GOLD, and CATL, experienced declines in their share prices, with notable short selling activity and varying inflows of capital.
Short Selling Ratios: High short selling ratios were observed in stocks like LAOPU GOLD (40.445%) and JD-SW (39.739%), indicating significant bearish sentiment among investors.
Changes in HSI Constituents' Weightings: Adjustments in the weightings of certain stocks in the Hang Seng Index (HSI) were noted, with some stocks like Tencent and Alibaba seeing increases, while HSBC and CLP Holdings experienced decreases.
Outflows and Inflows: The report highlighted both inflows and outflows of capital for various stocks, with HSBC facing a significant outflow of USD 503 million, contrasting with inflows for Tencent and CATL.
Daiwa Increases Year-End Gold Price Prediction to RMB1,290 per Gram, Maintains Buy Rating for LAOPU GOLD (06181.HK)
Gold Price Forecast: Daiwa raised its year-end gold price forecast from RMB1,200 to RMB1,290 per gram due to Middle East tensions and market expectations for higher prices.
LAOPU GOLD Price Adjustment: LAOPU GOLD implemented a significant price hike of about 29% on its products, marking its largest single price adjustment, with increases ranging from 20-30%.
Market Response: Despite the price increase, Citi expects limited impact on LAOPU GOLD's sales, while Daiwa maintains a positive outlook and keeps its target price at $880.
Profit Margin Projections: The company's average product gross profit margin is projected to reach 39.4% for 2026, as it passes on cost pressures to its core gold products.
Citi Anticipates Minimal Effect on Sales from LAOPU GOLD (06181.HK) Price Increase; Target Price Set at $1,119
Price Increase: LAOPU GOLD raised prices by an average of 27% on February 28, marking the largest increase in history, driven by higher gold prices and a goal to maintain a gross profit margin above 40%.
Market Impact: The price hike may reduce demand from price-sensitive customers, but peers are expected to follow suit in March, potentially stabilizing the market.
Promotional Activities: Upcoming events like the Tmall Goddess Festival and SKP malls' anniversary sale are anticipated to help alleviate sales pressure and support demand recovery.
Analyst Rating: Citi Research rated LAOPU GOLD as a Buy with a target price of $1,119, citing strong earnings prospects from same-store sales growth and new store openings.
G Sachs: LAOPU GOLD (06181.HK) Price Increase Aimed at Safeguarding GPM; Buy Rating Maintained with Target Price of $1,128
Price Increase: LAOPU GOLD raised prices by 20-30%, primarily between 25% and 30%, which was slightly above market expectations, particularly for pure gold products.
Gross Profit Margin (GPM) Goals: The company aims for a 40% GPM by 2026, as the recent price hike helps protect its margins after previously lagging behind gold price increases.
Demand Outlook: Despite concerns about the sustainability of growth post-price increase and the end of promotional periods, strong performance during the January to February peak season is expected to support a solid growth outlook for the first half of 2026.
Broker Rating: Goldman Sachs reiterated a Buy rating on LAOPU GOLD with a target price of HKD1,128, reflecting confidence in the company's future performance.
