LAOPU GOLD Declines 3.5% Following Announcement of $2.7B Fundraising via 4.5% Discounted Share Placement
Stock Performance: LAOPU GOLD (06181.HK) experienced a 7.888% drop, opening 3.52% lower at HKD740, with short selling amounting to $50.89 million and a ratio of 3.938%.
Share Placement Announcement: The company announced a 4.5% discounted placement of 3.7118 million new H shares at HKD732.49 each, aiming to raise approximately HKD2.707 billion.
Use of Proceeds: The funds from the share placement will be allocated as follows: 70% for inventory reserves, 10% for boutique expansion and optimization, and 20% for working capital and general corporate purposes.
Market Context: UBS noted that the gold trade is not "extremely crowded," suggesting ongoing demand for gold asset allocation due to factors like de-dollarization and debasement.
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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%.
<Research>BOCI Names LUK FOOK HOLD as Leading Industry Choice with Target Price Increased to HKD35.9
Gold Jewelry Consumption Outlook: BOCI predicts that gold jewelry consumption will remain strong in the first quarter of 2026, despite recent fluctuations in gold prices.
Winners in the Market: High-end retailers like LAOPU GOLD are expected to thrive due to their ability to support high premiums, alongside retailers with a strong presence in Hong Kong and Macau.
Top Industry Pick: BOCI has identified LUK FOOK HOLD as its top pick in the industry and has raised its target price to HKD 35.9.
Market Sentiment on Gold Prices: G Sachs views the current gold price as uncertain, projecting a year-end price of USD 5,400, while also noting potential volatility in silver prices.
Citi Research: High-Net-Worth Consumers Prefer LAOPU GOLD for Gold Collection; VIC Business Opportunities Are Vast
Positive Growth for LAOPU GOLD: The Hurun Chinese Luxury Consumer Survey indicates that LAOPU GOLD has risen from 8th to 3rd place among favorite jewelry brands for high-net-worth individuals in China, despite a contraction in the luxury market.
Citi's Favorable Outlook: Citi research highlights LAOPU GOLD as a top pick in the Chinese jewelry industry, citing the growing preference for gold collectibles among high-net-worth consumers and a target price of HKD1,119 with a Buy rating.
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.
Haitong International Maintains Outperform Rating on LAOPU GOLD; Strengthening Domestic and International Offline Presence
Revenue Growth Prediction: Haitong International forecasts LAOPU GOLD's revenue will increase by 217% YoY to RMB26.96 billion in 2025, with a significant rise expected in the second half of the year.
Business Performance Insights: The report indicates that LAOPU GOLD is experiencing faster growth in online sales compared to offline, and its international market expansion is surpassing domestic growth.
Stock Rating and Target Price: Haitong International maintains an Outperform rating for LAOPU GOLD, setting a target price of HKD948.4.
Market Context: The report also references a related analysis from M Stanley, suggesting that gold prices have not peaked and could potentially reach USD5,700 in the second half of the year.
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%.
<Research>BOCI Names LUK FOOK HOLD as Leading Industry Choice with Target Price Increased to HKD35.9
Gold Jewelry Consumption Outlook: BOCI predicts that gold jewelry consumption will remain strong in the first quarter of 2026, despite recent fluctuations in gold prices.
Winners in the Market: High-end retailers like LAOPU GOLD are expected to thrive due to their ability to support high premiums, alongside retailers with a strong presence in Hong Kong and Macau.
Top Industry Pick: BOCI has identified LUK FOOK HOLD as its top pick in the industry and has raised its target price to HKD 35.9.
Market Sentiment on Gold Prices: G Sachs views the current gold price as uncertain, projecting a year-end price of USD 5,400, while also noting potential volatility in silver prices.
Citi Research: High-Net-Worth Consumers Prefer LAOPU GOLD for Gold Collection; VIC Business Opportunities Are Vast
Positive Growth for LAOPU GOLD: The Hurun Chinese Luxury Consumer Survey indicates that LAOPU GOLD has risen from 8th to 3rd place among favorite jewelry brands for high-net-worth individuals in China, despite a contraction in the luxury market.
Citi's Favorable Outlook: Citi research highlights LAOPU GOLD as a top pick in the Chinese jewelry industry, citing the growing preference for gold collectibles among high-net-worth consumers and a target price of HKD1,119 with a Buy rating.
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.
Haitong International Maintains Outperform Rating on LAOPU GOLD; Strengthening Domestic and International Offline Presence
Revenue Growth Prediction: Haitong International forecasts LAOPU GOLD's revenue will increase by 217% YoY to RMB26.96 billion in 2025, with a significant rise expected in the second half of the year.
Business Performance Insights: The report indicates that LAOPU GOLD is experiencing faster growth in online sales compared to offline, and its international market expansion is surpassing domestic growth.
Stock Rating and Target Price: Haitong International maintains an Outperform rating for LAOPU GOLD, setting a target price of HKD948.4.
Market Context: The report also references a related analysis from M Stanley, suggesting that gold prices have not peaked and could potentially reach USD5,700 in the second half of the year.
