HK Stock Market Move | LAOPU GOLD (06181) rose nearly 6%, recently received positive recommendations from several major banks, and is expected to benefit from the peak season for jewelry sales, boosting retail sales.

LAOPU GOLD (06181) rose nearly 6%, rising 5.98% to HK$304.6 at the time of drafting, with a turnover of HK$66.5548 million. On the news front, Zhongjin Research Report pointed out that the rapid rise in gold prices last year affected the sales of mass jewelry, but high-end gold remained resilient. The company has launched promotional activities in multiple stores since the end of last year, which is expected to drive sales growth. The bank continues to be optimistic about the growth prospects of LAOPU GOLD this year, raising its net profit forecast for the next two years by 15% and 18% to HK$1.2 billion and HK$1.7 billion respectively, and forecasting HK$2.3 billion for 2026. Considering the upcoming peak season for jewelry, it is expected that terminal sales will continue to grow rapidly, and the continuous increase in brand awareness will boost valuation, raising the target price by 67% to HK$343.26. Goldman Sachs reiterated a "buy" rating on LAOPU GOLD, raising its net profit forecast for the company for the years 2024 to 2026 by 11% to 26% based on strong brand momentum, reflecting better same-store sales prospects and operating leverage, with the target price raised significantly from HK$205 to HK$345. JP Morgan also raised LAOPU GOLD's target price from HK$229.4 to HK$338, an increase of 47.3%, maintaining a "neutral" rating. The bank is optimistic about LAOPU GOLD's growth prospects, believing that its strong growth will benefit from brand asset building, product innovation in markets that value national pride, and strong value proposition.