Understanding the Market | LAOPU GOLD rises over 6% against the trend, having surged 20 times since its listing. Credit Suisse indicates that its strong growth can enjoy a higher premium
LAOPU GOLD's stock price rose over 6% against the trend, with a cumulative increase of 20 times since its listing in June last year, currently reported at HKD 850. Jefferies raised its target price from HKD 230 to HKD 1,068, with a rating of "Buy," expecting net profits for 2025 and 2026 to be raised by 140% and 227%, respectively. The company's chairman stated that they will strive to create the number one brand of traditional Chinese gold, with future sales targets exceeding RMB 1 billion per store
According to Zhitong Finance APP, LAOPU GOLD (06181) has risen over 6% against the trend. It is worth mentioning that since its listing in June last year, LAOPU GOLD's stock price has increased 20 times. As of the time of writing, it has risen 6.38%, priced at HKD 850, with a transaction volume of HKD 418 million.
On the news front, according to China News Service, since 2025, many LAOPU GOLD stores nationwide have repeatedly become hot topics for "queueing to grab goods." In its financial report, LAOPU GOLD mentioned the phenomenon of significant foot traffic in its stores in major shopping malls in recent years, as well as the stores' exceptionally high revenue and sales per square meter, which further helps the company effectively optimize the area and location of existing stores. Additionally, at the annual performance briefing held on April 1 for 2024, the company's chairman Xu Gaoming stated that they are committed to making LAOPU GOLD the number one brand of ancient method gold in China with strong market competitiveness and the number one gold brand in the world, with an average store efficiency target of over 1 billion yuan in the future.
Citi pointed out that it has significantly raised the target price for LAOPU GOLD from HKD 230 to HKD 1,068, maintaining a "Buy" rating. The new target price corresponds to a forecasted price-to-earnings ratio of 23 times for 2026 and 17 times for 2027, believing that its strong growth can enjoy a higher premium. Following the company's performance, the bank raised its net profit forecasts for 2025 and 2026 by 140% and 227%, respectively, pointing out that the company has maintained strong performance since 2025, enhancing its optimistic forecasts and confidence. Meanwhile, management is confident that the company can become a leading international pure gold brand (i.e., jewelry and decorative items), with a target of over 1 billion yuan in sales per store, which will help Citi's long-term growth outlook for the company