HK Stock Market Move | LAOPU GOLD (06181) up more than 7% since the beginning of the year, with excellent terminal sales performance in 26 years. Institutions expect further room for gross profit recovery this year.

LAOPU GOLD (06181) rose more than 7%, with a gain of 7.05% at the time of writing, reaching 790 Hong Kong dollars with a trading volume of 7.5 billion Hong Kong dollars. Daiwa released a research report stating that since the end of December 25, the stock price of LAOPU GOLD has only risen by 8%, lagging behind the 12% increase in gold prices. Based on recent conference calls with management, the company has reiterated its goal of achieving a 40% gross profit margin this year, although Daiwa expects the gross profit margin to decrease in the second half of 2025. Daiwa stated that assuming gold prices rise by 10% linearly on top of the 12% increase since the beginning of the year, and the company commits to maintaining a gross profit margin of 40% or more, it is estimated that LAOPU GOLD needs to raise the selling price per gram of gold by more than 35% this year. CICC pointed out that in early 2026, LAOPU GOLD will continue to launch the new Wuma series, effectively combining Chinese traditional cultural elements with exquisite craftsmanship. With the support of the company's brand strength and product strength, the bank expects double-digit and triple-digit year-on-year growth in domestic same-store and overall sales during the New Year period. Looking at the whole year, the bank expects LAOPU GOLD to focus on store optimization domestically in 2026, with room for expansion in overseas markets such as Japan and Singapore. After experiencing gold price fluctuations and changes in the operating environment in 2024-2025, the management's capabilities have further improved and accumulated more experience, and the bank expects that there is further room for the gross profit margin to recover in 2026.