Nomura reiterates "buy" rating on LAOPU GOLD (06181) and raises target price to HK$576.

Nomura released a research report, reaffirming a "buy" rating for LAOPU GOLD (06181) with a target price raised from 525 Hong Kong dollars to 576 Hong Kong dollars. LAOPU GOLD's performance in 2024 exceeded expectations, with a profit announcement indicating a net profit of 1.4 billion to 1.5 billion Chinese yuan for the previous year, 10% higher than the bank's expectations. The strong profit growth is attributed to robust growth in same-store sales last year, the opening of seven new stores, and the upgrading of four existing boutique stores. The bank expects LAOPU GOLD's same-store sales to continue to grow strongly and become a major driver of growth in the next two years. By continuously adding new stores and adjusting the locations of existing stores, LAOPU GOLD's same-store sales are expected to further increase.