BofA Securities issued a "Buy" rating on LAOPU GOLD (06181.HK) due to the expectation of strong revenue growth in the second half of 2025, forecasting revenues to reach RMB13.2 billion, a 165% year-over-year increase, driven by rising gold prices and continued brand penetration. The broker anticipates significant growth in single store sales, projecting RMB250 million for 2H25 and RMB527 million for 2025, representing increases of 100% and 133% year-over-year, respectively. Despite concerns about pressure on gross margins due to a higher proportion of low-margin sales and challenges in inventory management, BofA believes that high gold prices and ongoing brand momentum present upside risks to the company's sales, justifying the "Buy" rating. However, they reduced the target price from $958 to $860.
