HK Stock Market Move | LAOPU GOLD (06181) rose more than 5% during trading, institutions continue to be optimistic about the growth prospects of 25-year high-end traditional gold.

LAOPU GOLD (06181) rose more than 5% in midday trading, up 5.05% to HK$295.2 at the time of writing, with a trading volume of HK$38.60 million. CICC released a research report stating that the company is expected to achieve a revenue of 7.5 billion yuan in 2024, a year-on-year increase of 136%; and a net profit attributable to the parent company of 1.2 billion yuan, a year-on-year increase of 187%. The report pointed out that since the fourth quarter of 2024, several stores including Beijing Gome Building, Shanghai Yuyuan Store, Beijing Eastern Newland Pharmaceutical Store, and Beijing Wangfujing Group Department Store have launched discount and promotion activities. After the activities were launched, the store traffic increased significantly, which is expected to have a strong stimulating effect on terminal sales. The fourth quarter and first quarter of each year are the peak seasons for the gold jewelry industry, and the combination of the peak consumer season and related discount activities by brands and shopping malls is expected to further drive the company's sales growth and bring positive operating leverage to the stores. The bank believes that the ancient gold market is a high-growth, highly concentrated niche market, and LAOPU GOLD has a differentiated brand positioning, product tone, and channel layout. With Chinese traditional cultural elements as the foundation, combined with the exquisite craftsmanship of skilled craftsmen, they have created ancient gold products with a sense of luxury, meeting the increasing aesthetic demands of high-net-worth consumers who seek product quality and cultural connotations. Looking ahead to 2025, LAOPU GOLD is expected to continuously increase market share with its competitive advantages and gradually improve overall profitability with the support of high store efficiency.