HK Stock Market Move | LAOPU GOLD (06181) rose over 6% in early trading. Citibank predicts that the same-store sales growth of LAOPU GOLD in November will increase by 200%.

LAOPU GOLD (06181) rose more than 6% in early trading, as of the time of writing, it rose by 5.28% to 708 Hong Kong dollars, with a trading volume of 3.24 billion Hong Kong dollars. Citigroup released a research report stating that based on its survey of LAOPU GOLD's store at SKP shopping center, it is expected that the same-store sales growth rate during the November promotion period will exceed 200%, similar to the performance in August and the first half of the year. It believes that this sustained growth momentum can indicate a promising demand during the Chinese New Year period next year, and also believes that there is further room for growth in LAOPU's same-store sales growth rate. The bank expects that LAOPU's sales at SKP will reach 5 billion yuan by 2025, with a further 8% to 11% increase in 2026, mainly driven by an increase in average transaction value. Citigroup gives a "buy" rating to LAOPU GOLD, with a target price of 1119 Hong Kong dollars based on a forecasted P/E ratio of 36 times in 2025, and a corresponding P/E ratio of 26.4 times in 2026. Despite the significant cumulative increase in the stock price since its listing in June 2024, Citigroup still believes that strong fundamentals support a continued increase in valuation.