HK Stock Market Move | LAOPU GOLD (06181) rebounded more than 5% after good earnings and received a major bank's upward revision of net profit forecast. JP Morgan expects strong momentum to continue in the second half of the year.

LAOPU GOLD (06181) rebounded by more than 5%, rising 5.43% to 727.5 Hong Kong dollars as of press time, with a turnover of 9.28 billion Hong Kong dollars. On the news front, LAOPU GOLD recently announced a profit surge, expecting to achieve revenue of 12 to 12.5 billion Chinese yuan in the first half of the year, a year-on-year increase of 241% to 255%; achieving a net profit of 2.23 to 2.28 billion Chinese yuan, a year-on-year increase of 279% to 288%. Bank of America Securities released a research report stating that it has raised its adjusted net profit forecast for LAOPU GOLD for the next two years by 11% and 6% respectively to 5 billion and 6.6 billion Chinese yuan, and expects the company's revenue in the second half of this year to reach 13.8 billion Chinese yuan, a year-on-year increase of 178%, with adjusted net profit expected to reach 2.7 billion Chinese yuan, a year-on-year increase of 206%. JP Morgan stated that the robust expansion of boutique stores in the first half of 2025 (including the opening of 5 new boutique stores and the renovation of 1 boutique store) has not been reflected in the first half financial report, and will contribute in the second half of the year. The bank believes that new boutique stores have shown strong performance during their opening promotion period, with an ideal customer base, strong customer traffic, and sales. Therefore, JP Morgan expects this momentum to continue in the second half of 2025, driven by the value of the old brand, product innovation, and the strong market value proposition of national brands. Future catalysts include the opening of new stores and potential inclusion in the MSCI China Index.