HK Stock Market Move | LAOPU GOLD (06181) rose by over 8% again, with annual net profit increasing by more than 2.3 times year-on-year. First quarter guidance exceeded expectations.

LAOPU GOLD (06181) rose more than 8%, as of press time, it was up 7.79%, trading at 699 Hong Kong dollars, with a turnover of 7.57 billion Hong Kong dollars. On the news front, LAOPU GOLD announced its annual results, with total revenue reaching 27.303 billion yuan, a year-on-year increase of 221.0%; the net profit attributable to the owners of the parent company was 4.868 billion yuan, a year-on-year increase of 230.5%.UBS released a research report stating that LAOPU GOLD has provided guidance for the first quarter of this year, with expected revenues of 16.5 billion to 17.5 billion yuan and net profits of 3.6 billion to 3.8 billion yuan, higher than expected. Citigroup and Nomura believe that LAOPU GOLD's growth is driven by store expansion, rising gold prices, and price increases resonating, resulting in significantly enhanced profitability. Even if gold prices fall, profit remains stable in a pessimistic scenario, with limited downside risks; there is also no financing pressure due to sufficient inventory. At the same time, the acceleration of the brand's high-end transformation, the overlap of customer groups with top luxury brands continues to increase, as it moves towards becoming a scarce target of "Chinese luxury brands".