Citi: Raises target price for Lao Feng Xiang Gold to HK$1119, maintains "Buy" rating.

Citibank released a research report stating that Lao Pu Gold's overseas expansion plan seems to be accelerating, with plans to open up more new markets by 2026. Management did not deny the need for funding to support growth, which may raise concerns among investors about potential financing. Citibank expects new store investments to break even within two years, and free cash flow to turn around by 2026. With the opening of new stores and the leverage effect of operations, strong growth in same-store sales is expected. The bank has raised its net profit forecasts for Lao Pu Gold for the fiscal years 2025 to 2027 by 3%, 2%, and 1% respectively, raising the target price from HK$1084 to HK$1119, and maintaining a "buy" rating.