The analyst rating for LAOPU GOLD (06181.HK) was reiterated as a "Buy" due to several key factors:
1. Strong In-Store Foot Traffic: Observations from the SKP mall indicated noticeable in-store foot traffic during the Lunar New Year promotional activities, suggesting robust consumer interest and demand.
2. Rising Gold Prices: The recent upsurge in gold prices is believed to have further fueled strong demand for gold products, contributing to positive sales expectations.
3. Revenue Growth Expectations: The broker anticipates triple-digit revenue growth from the holiday promotion to continue through the Lunar New Year period, leading to an upward revision of revenue forecasts.
4. Increased Earnings Forecasts: The broker raised its 2026 and 2027 earnings forecasts by 5% each, reflecting higher same-store sales growth (SSSG) expectations and the potential of Lunar New Year sales.
5. Target Price Adjustment: The target price for LAOPU GOLD was set at HKD1,119, indicating confidence in the stock's future performance despite a slight downward revision in gross margin assumptions.
Overall, the combination of strong demand indicators, positive sales forecasts, and adjusted earnings expectations contributed to the analyst's decision to maintain a "Buy" rating.
