HK Stock Market Move | LAOPU GOLD (06181) rises more than 5% during the New Year period, sales momentum remains strong, Citibank is optimistic about its continued profitability.

LAOPU GOLD (06181) rose more than 5%, as of the time of publication, it rose 5.12% to 656.5 Hong Kong dollars, with a turnover of 1.003 billion Hong Kong dollars. On the news front, a Goldman Sachs report pointed out that the bank invited LAOPU GOLD to participate in its Asia-Pacific Consumer and Leisure Company Day on the 8th. The management of LAOPU GOLD raised several key points, including that the group's management did not see sales pressure after the price increase of gold products in October, and noted that there were long queues in multiple cities during the holidays. During the New Year holiday period, sales at the old stores and company level recorded high double-digit and triple-digit year-on-year growth; it is believed that brand awareness, channel expansion, upgrading, and operational capability improvement will support sales during the mainland's Spring Festival peak season, and the company is more prepared in terms of inventory and operations than last year. A Citigroup report stated that, based on the demand recovery and margin improvement observed by the bank during the New Year holiday, they are more confident in the outlook for Laopu this year. Citigroup believes that consumers have already absorbed the price increases and are supported by widespread industry price adjustments and the rebound in gold prices since December last year. The report stated that promotions during the long holiday period also stimulated demand recovery. The bank believes that strong demand will continue until the Spring Festival holiday. Citigroup stated that Laopu's gross margin has already recovered to over 40% since the end of November last year, and is expected to further increase prices after the Spring Festival, with high profitability likely to continue this year.