Morgan Stanley: Raises LAOPU GOLD (06181) revenue and profit forecast for the year by 13% to 14%, and rates it as "overweight".

Morgan Stanley released a research report stating that LAOPU GOLD (06181) showed strong performance in the first quarter of this year, and is expected to double its earnings per share in the first half of the year compared to the same period last year. The stock is considered attractive with a forecasted price-earnings ratio of 13 times in 2026, with an earnings forecast showing upside risk. Morgan Stanley maintains a target price of 1,010 Hong Kong dollars for the company, but due to fluctuations in gold prices and uncertain demand, the target price-earnings ratio has been lowered from 23 times to 20 times, with a rating of "hold". The bank stated that the management has not commented on fundraising needs, but has acknowledged cash flow constraints. The bank believes that the recent sharp drop in gold prices has brought uncertainty to the market demand, but also presents a good opportunity to test whether its brand strength can support sustained re-evaluation. Morgan Stanley has raised its revenue and net profit forecasts for LAOPU GOLD by 13% to 14%, expecting a year-on-year increase of 55% and 66% in 2026, reaching 42 billion and 8 billion Chinese yuan respectively. Given the uncertainty in gold prices, it is assumed that the growth momentum in the second and fourth quarters of this year may slow down, and the current forecast is considered conservative.