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<Research>UBS: LAOPU GOLD (06181.HK) Mgmt Confident in Maintaining 40% GPM This Yr; Rating Kept at Buy
Recommend 6 Positive 23 Negative 7 |
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LAOPU GOLD (06181.HK)'s Executive Director, Feng Jianjun, and management team participated in the 2026 GCC in Shanghai yesterday (12th), according to UBS' research report. The management of LAOPU GOLD said that the Group's overall sales achieved triple-digit growth during the New Year holiday, with strong double-digit same-store sales growth (SSSG) for old stores. Although management expected the 2H25 gross profit margin to be lower than that in 1H25, the gross profit margin has rebounded to 40% after the product price hike at the end of October, UBS noted. Assuming a moderate increase in gold prices this year, management estimated a YoY improvement in gross profit margin, and was more confident in maintaining a 40% gross profit margin for the entire year. UBS predicted LAOPU GOLD's 2025 net profit to be in line with its forecast of RMB4.7 billion. Therefore, the broker kept rating at Buy, with a 12-month target price of $890, corresponding to a projected 2026 PE ratio of 22x. UBS also anticipated that, despite a higher base around the Spring Festival, better-than-expected SSSG may be a potential positive catalyst. AASTOCKS Financial News Website: www.aastocks.com |
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