HK Stock Market Move | LAOPU GOLD (06181) rises over 5%. The company's product recognition and brand momentum continue to increase. JP Morgan initiates coverage with a "buy" rating and ranks it as a top pick in the industry.

LAOPU GOLD (06181) rose more than 5%, as of the time of writing, it has risen by 4.29%, trading at 213.8 Hong Kong dollars, with a turnover of 36.5106 million Hong Kong dollars. CMSC pointed out that LAOPU GOLD focuses on high-end traditional gold, with significant differences in brand positioning, products, channels, and target customer groups compared to other mass gold jewelry brands: products cover foot gold & inlaid jewelry, ornaments, and various collectible gold items, and channels are laid out in domestic high-end commercial centers with self-operated stores, mainly targeting high-end consumers. Currently, the company's product recognition and brand momentum are continuously increasing. In 2024, under the comprehensive drive of factors such as rising gold prices, increasing same-store sales volume, and store expansion, the company's performance will explode. JP Morgan previously released a research report stating that LAOPU GOLD's business exposure is entirely based on ancient gold craftsmanship, with a leading advantage in the continuous product innovation cycle. This is a unique emerging Chinese luxury stock. Even though its stock price has risen by about four times since its listing in June, the bank believes that the valuation, equivalent to a forecasted future year price-earnings ratio of 19 times, is not high. The bank believes that LAOPU GOLD has the potential to develop into a rare luxury stock in China, with an expected average annual compound sales and net profit growth of 55% and 65% respectively from 2024 to 2026. It initiates coverage with a "hold" rating and is listed as the industry's top pick.