CICC: Maintains "outperform" rating on LAOPU GOLD (06181) with a target price raised to HK$343.26

China Gold released a research report stating that it maintains a "outperform" rating for LAOPU GOLD (06181), taking into consideration the upcoming peak season for jewelry, expecting rapid growth in end demand and the continuous improvement in brand awareness to boost valuation. The target price was raised by 67% to 343.26 Hong Kong dollars. The bank predicts that LAOPU GOLD's revenue increased by 136% year-on-year to 7.5 billion yuan last year, and net profit increased by 187% to 1.2 billion yuan. The bank pointed out that the rapid rise in gold prices last year affected the sales of mass-market jewelry, but high-end gold remained resilient. The company has introduced promotional activities in multiple stores since the end of last year, which is expected to drive sales growth. The report stated that the bank continues to be optimistic about the growth prospects of LAOPU GOLD this year. It raised its profit forecast for this year and the next by 15% and 18% to 1.2 billion and 1.7 billion yuan respectively. It also forecasted 2.3 billion yuan for 2026.