Yamato: First to LAOPU GOLD (06181) with a "buy" rating, target price of HKD 950.

Daiwa released a research report stating that it gave a "buy" rating to LAOPU GOLD (06181) with a target price of 950 Hong Kong dollars for 12 months, based on a target price-earnings ratio of 22 times, applied to its earnings per share in the 2026 fiscal year. Daiwa believes that the market has undervalued the combination of the strength of the Laopu brand, growth profile, and disciplined expansion strategy, providing investors with a good opportunity to enter the market at the current price. The stock seems to be weighed down by two major non-fundamental factors (1. concerns about another stock issuance; 2. continued sell-off of stock incentive platforms), the previous valuation premium over peers has completely disappeared. Although the possibility cannot be ruled out, it is believed that the current price reflects short-term risks and creates attractive long-term risk returns; Daiwa expects Laopu's net profit to grow by 207% year-on-year in the second half of this year and by 32% in the 2026 fiscal year. From a fundamental perspective, Daiwa believes that Laopu stands out with its profound understanding of luxury brand construction in the Chinese market, a capability recognized by global leaders such as LVMH and Swiss luxury companies like Richemont. Laopu's management's track record in strategic transformation, focus on sustainable growth, and first-mover advantage in securing prime luxury mall locations in major Chinese cities give Daiwa confidence in its ability to establish lasting brand appeal and believes that its network can expand by at least 50% in the long term.