Morgan Stanley: LAOPU GOLD (06181) believes that consumers have started to accept its pricing mechanism and will continue to adjust prices twice a year.

Morgan Stanley released a research report stating that although LAOPU GOLD (06181) has recently increased product prices by 12.5%, there are still queues outside the stores, indicating good demand. The group believes that consumers have begun to accept LAOPU GOLD's pricing mechanism and will continue the practice of adjusting prices twice a year. Short-term fluctuations in gold prices may affect gross profit margins, but the long-term goal is to maintain gross profit margins at around 40%. The report indicates that the focus of LAOPU GOLD's China business in 2026 is to upgrade the existing store network. Following the recent opening of a new store in Singapore, the next store is planned to open in Japan in 2026-2027, with the specific timing depending on when the property owner hands over the property. In addition, the scale of financing required for group inventory purchases will depend on the performance growth trajectory in the fourth quarter of this year and the group's expectations for growth in the first quarter of 2026.