LAOPU's first overseas store opened, with strong initial customer traffic, and the newly launched "Golden Cross" series attracting overseas customers

LAOPU's first overseas store is located at Marina Bay Sands in Singapore, and it performed impressively during its first weekend after opening on June 21. According to news from the Chasing Wind Trading Desk, Morgan Stanley's latest on-site research shows that customers need to queue for about 1 hour during peak hours, indicating strong initial demand. Based on on-site observations and social media feedback, Morgan Stanley stated that the pricing strategy of this store is basically on par with that in mainland China. Currently, most consumers visiting the store come from mainland China. Notably, LAOPU has exclusively launched the "Golden Cross" series in Singapore, attempting to expand its market beyond traditional Chinese cultural clientele. However, Morgan Stanley remains cautious about its alignment with LAOPU's traditional brand image and market acceptance. To attract customers, LAOPU's Singapore store is offering a promotion of SGD 10 off for purchases over SGD 100 from June 21 to 29. During the first two months of operation, customers will not be able to enjoy tax refund benefits and mall points. LAOPU's first overseas store sees strong foot traffic, "Golden Cross" series attracts attention The new Singapore flagship store has also launched a brand new “Golden Cross” series of products, priced between SGD 3,600 and SGD 7,000 (approximately SGD 1,500 per gram). The new series aims to broaden the customer base and attract a more diverse consumer group, complementing LAOPU's existing focus on products rooted in traditional Chinese culture. However, Morgan Stanley believes that despite the potential of the “Golden Cross” series to attract new consumer groups, the market's demand for this series remains cautious. A previous consumer survey indicated that LAOPU ranked first in "embodying the inheritance of Chinese culture," while the newly launched “Golden Cross” series has certain differences from the brand's inherent Chinese cultural image, leading Morgan Stanley to adopt a wait-and-see attitude regarding its ability to successfully integrate into the brand and gain consumer recognition. In terms of pricing, taking a butterfly necklace as an example, Morgan Stanley's pricing research shows significant price differences across regions after considering retail discounts: Singapore: RMB 1,461 per gram (8.86 grams, discounted price SGD 2,320) Hong Kong: RMB 1,239 per gram (8.9 grams, HKD 12,247) Mainland China: RMB 1,416 per gram (8.9 grams, RMB 12,600) Even if the Singapore store introduces a 9% tax refund service in the future, prices will still be 7% higher than in Hong Kong but 6% lower than in mainland China. The company stated that the tax refund and mall points policy may change in two months. Morgan Stanley maintains a "neutral" rating on LAOPU Gold, with a target price of HKD 865, based on an expected price-to-earnings ratio of 33 times for 2025 and a PEG ratio of 1.4 times. As of the time of publication, LAOPU Gold has fallen 2.38% to HKD 860 per share.