Nomura: Maintains a target price of HK$1114 for the old gold shop, with attractive risk-return profile still present.

Nomura released a research report stating that despite facing fluctuations in gold prices, Lao Feng Xiang Gold has continued to adhere to its established growth strategy in the second quarter of this year, including launching new products, upgrading boutique stores, and expanding the high net worth customer segment. The bank has a positive view on the company's recent moves to relocate and expand boutique stores in Shenzhen MixC World, Shanghai Golden Tower, Shanghai Henderson Plaza, and Marina Bay Sands Shopping Mall in Singapore. Store upgrades not only expand service areas to accommodate more consumers, but also provide a differentiated shopping experience through newly appointed in-store after-sales service managers. In the long run, the improvement in boutique store locations and expansion of area will help enhance the brand's visibility. Nomura maintains its revenue and profit forecasts for Lao Feng Xiang Gold for the fiscal years 2026 to 2028, with a PE ratio of 22.5 times the forecast for the 2026 fiscal year. The bank reiterates its "buy" rating and maintains its target price at HK$1114, believing that the company's risk-return profile remains attractive.