Ten-link Securities: Lao Fengxiang's full-year performance under pressure, Q4 profits increased significantly, downgraded to "hold" rating.

First Securities' research report pointed out that Laofengxiang's performance in the fourth quarter of 2025 was impressive, with active layout of themed stores in the channel end. Due to factors such as the high price of gold and the implementation of new policies on gold taxation, the sales volume of gold jewelry showed signs of weakness. As a leading company in the gold jewelry industry, the company continues to optimize traditional stores in the channel end, focusing on the layout of themed stores, and the overall store efficiency is expected to improve in the future; with the continuous upgrading of product craftsmanship, there is still a certain amount of room for increase in gross profit margin. The uncertainty of the global macroeconomic situation still exists, and the escalation of geopolitical friction and the central banks of emerging economies purchasing gold will further push up the price of gold. The impact of high gold prices on the demand for gold jewelry at the end terminal may continue. According to the latest operating data, it is expected that the company's EPS for 2025-2027 will be 3.35/3.70/3.96 yuan per share respectively, with corresponding PEs for March 11, 2026 closing prices of 13/12/11 times, downgraded to a "hold" rating.