HK Stock Market Move | LAOPU GOLD (06181) rises more than 6%, strong performance in Singles' Day sales, UBS points out its valuation is still low.

LAOPU GOLD (06181) rose more than 6%, up 6.6% as of the time of writing, at HK$203.4, with a turnover of HK$103 million. On the news front, a report from UBS pointed out that LAOPU GOLD's sales momentum has remained strong from the second half of the year onwards. They have opened two new specialty stores and have been renovating three branch stores by expanding their area. The bank believes that since being included in the Hong Kong Stock Connect on September 10, LAOPU GOLD's stock price has risen by about 117%, but its valuation is still relatively low. The bank predicts that catalysts for LAOPU GOLD may include a rebound in gold prices after a short-term adjustment; strong sales momentum during the year-end shopping festival; the potential opening of a new store in Singapore in early 2025; and positive operating cash flow in 2025 as inventory turnover improves. Reports indicate that this year's Double 11 saw LAOPU GOLD transition from offline to online. During this year's Double 11, LAOPU GOLD topped the Tmall jewelry sales chart as TOP1, with transactions skyrocketing by nearly 400% compared to last year, making it the true sales champion in the gold category of this year's Double 11. Financial reports show that LAOPU GOLD's revenue and profits both experienced rapid growth in the first half of this year, with net profit increasing by nearly 200% year-on-year.