HK Stock Market Move | LAOPU GOLD (06181) rises more than 6% to set a new high, with annual net profit expected to increase by 2.6 times year-on-year. The company's multiple stores are experiencing strong sales.

LAOPU GOLD (06181) rose more than 6%, reaching a high of 655 Hong Kong dollars, continuing to set a new high since its listing. As of the time of writing, it has risen by 6.51% to 654 Hong Kong dollars, with a trading volume of 2.68 billion Hong Kong dollars. In terms of news, LAOPU GOLD previously announced a profit announcement, expecting a net profit of approximately 1.4 billion to 1.5 billion yuan for the full year of 2024, a year-on-year increase of approximately 236% to 260%, mainly attributed to the steady growth in same-store sales last year, the opening of seven new stores, and the renovation and upgrading of four existing boutique stores. In addition, LAOPU GOLD's first store overseas has been selected and is currently under renovation, with the first store located in the Marina Bay Sands shopping center in Singapore. Open Source Securities believes that the company's expansion into overseas top luxury shopping malls not only enhances LAOPU GOLD's brand tone and international influence, but also further provides support for the company's core position competition in domestic business districts, realizing greater sales potential through location optimization and upgrading. China Securities Co., Ltd. pointed out that with the further breaking through of the LAOPU GOLD brand, coupled with the rapid rise in gold prices, several of the company's stores have seen booming sales and long queues recently. The bank expects the company's sales to maintain a strong growth trend in January-February 2025, with the first quarter performance expected to reach 8-9 billion yuan. Shenwan Hongyuan Group stated that LAOPU GOLD is deeply cultivating the traditional gold market, striving to create a high-end Chinese traditional gold brand with high cultural value and strong international competitiveness. In the current gold and jewelry market, the brand has a scarcity in high-end channels, products, and brand awareness, and is expected to fully benefit from the rise of high-end gold consumption under the return of national trend and the growth opportunities for Chinese high-end consumer brands to go global in the future.