Daiwa Increases Price Target for LAOPU GOLD (06181.HK) to HKD880, Reiterates Buy Rating
Stock Performance: LAOPU GOLD's stock price has increased by 8% since the industry outlook report on December 19, 2025, which is lower than the 12% rise in gold prices.
Management Outlook: The company's management reiterated a target of achieving a 40% gross margin for the year, although a decline in gross margin is expected in the second half of 2025.
Earnings Forecast Adjustments: Daiwa has adjusted its earnings per share (EPS) forecast, lowering the 2025 EPS by 5% due to lower gross margin expectations, while raising the 2026 EPS by 2% due to anticipated higher sales.
Target Price Update: The target price for LAOPU GOLD has been increased from HKD860 to HKD880, with a maintained Buy rating.
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G Sachs Predicts 4% Slowdown in China's Jewelry Market Growth This Year, Recommends LAOPU GOLD
China's Jewelry Market Growth: Goldman Sachs forecasts a slowdown in China's jewelry market growth to 4% in 2026, down from approximately 10% in 2025, due to high base effects and unstable consumption power, maintaining a Neutral outlook for the sector.
Gold Price Predictions: The broker anticipates gold prices will reach USD 5,400 per ounce by the end of 2026, representing a 25% year-over-year increase, with demand supported by rising prices but facing challenges in product margins and sales consumption.
Market Performance: The jewelry sector's stock prices have outperformed the Hang Seng Index (HSI), indicating a strong market performance despite the anticipated slowdown in growth.
Investment Recommendations: Goldman Sachs has a Buy rating on LAOPU GOLD (06181.HK), citing growth opportunities and setting a target price of HKD 1,128, despite current short selling pressures.
CMSI Launches LAOPU GOLD with Underweight Rating, Anticipates Significant Revenue Slowdown and Decline in Earnings Quality
Revenue Growth Prediction: CMSI forecasts that LAOPU GOLD will experience a significant slowdown in revenue growth, dropping from 220% in 2025 to approximately 30% in 2026.
Marketing Strategy Concerns: The company's current revenue is largely driven by FOMO marketing tactics rather than genuine sales growth, which raises concerns about its sustainability compared to true luxury brands.
Deteriorating Earnings Quality: The report indicates a decline in LAOPU GOLD's earnings quality, with a conservative store expansion plan focusing more on efficiency than growth, limiting its market presence.
Investment Rating and Target Price: CMSI has assigned an Underweight rating to LAOPU GOLD, setting a target price of HKD825.5 for the stock.
