According to news from the Chasing Wind Trading Platform, JP Morgan analysts conducted an on-site investigation at LAOPU GOLD's Marina Bay Sands store in Singapore from June 23 to 24 and found its performance exceeded expectations.
Specifically, the Marina Bay Sands store in Singapore has a steady flow of customers, a conversion rate of over 95%, processes 4-10 orders per hour, and the consumer profile aligns with the brand positioning. Additionally, the overall service and display standards of the store are comparable to flagship stores in first-tier cities in mainland China.
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JP Morgan raised the target price for LAOPU GOLD from HKD 1,149 to HKD 1,249, maintaining an overweight rating. Analysts expect LAOPU GOLD's sales and net profit compound annual growth rates to reach 68% and 76%, respectively, from 2025 to 2027, and have raised their earnings forecasts for 2025-2027 by 11-13%.
<h2>Impressive Operating Data from Singapore's First Store</h2>
LAOPU GOLD's Marina Bay Sands store in Singapore opened on June 21, with queue times reaching 2-3 hours on weekends and 1-1.5 hours on weekdays. JP Morgan stated that the store's sales conversion rate exceeds 95%, processing 4-10 orders per hour, with an average customer stay of 1 hour to learn about the brand and products.
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Approximately 95% of the customer base consists of local customers, with 50% being Chinese residents in Singapore, 40% being locals, and 5% being Malaysians.
Notably, 90% of customers are first-time contacts with the LAOPU GOLD brand, attracted by LAOPU's design, craftsmanship, and symbolic meaning of products. They indicated that after comparing brands like Tiffany, Van Cleef &amp; Arpels, and Chow Tai Fook, they ultimately chose LAOPU's products.
<h2>Product Pricing Consistent with Service Standards</h2>
The product pricing at the Singapore store is basically consistent with domestic prices, with the exception of two Singapore-exclusive &#34;cross pendants,&#34; where the price differences for other products are only between 0.1%-0.9%. The store offers about a 10% opening discount and additional gifts, comparable to promotional efforts in domestic stores.
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The Singapore store fully replicates the service standards of domestic boutiques, including trained sales consultants (some from Shenzhen and others from other luxury brands in Singapore), VIP rooms, high-quality tea service, and English service provided as needed.
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In addition to impressive foot traffic and sales data, JP Morgan also pointed out that the location of LAOPU GOLD stores is strategically significant, situated directly across from the MBS casino and adjacent to several luxury brands. The stores operate late into the night, with some employees working until midnight to handle the exceptionally high customer flow during the initial opening period. Meanwhile, the brand plans to establish an independent membership system in Singapore and retain a 5% discount for mainland customers, with expectations to gradually open more stores in Southeast Asia in the future.
As of 2025, LAOPU GOLD will have a total of 40 opened stores and 5 under construction. Beijing has the most stores (13), followed by Shanghai with 5 (3 of which are under construction), Shenzhen with 4 (1 under construction), and Hong Kong with 3 (1 under construction).
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<h2>Significant Upgrade in Financial Forecast</h2>
JP Morgan has raised LAOPU GOLD's revenue forecast for 2025 from RMB 19.973 billion to RMB 21.691 billion, and for 2026 from RMB 28.061 billion to RMB 31.184 billion. Analysts expect the company's sales and profits to grow by 155% and 181%, respectively, in 2025. Additionally, LAOPU GOLD's sales in first-tier and new first-tier cities in China account for over 85%, with single-store sales efficiency leading among domestic brands.
The net profit margin is expected to increase by 1.9 percentage points in 2025, primarily benefiting from operating leverage, with the ratio of operating expenses to sales revenue expected to decrease by 2.6 percentage points. Same-store sales growth is projected to reach 115%, while store expansion is expected to grow by 22%.
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JP Morgan noted that upcoming catalysts include: the opening of more new stores, potential profit forecasts, and the possibility of inclusion in the MSCI China Index. Risk factors include weakening consumer confidence, slowing same-store sales, channel expansion falling short of expectations, and product quality issues.
As of June 265, LAOPU GOLD's stock price was HKD 868.5, with a year-to-date increase of 259%.
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JP Morgan stated that the LAOPU GOLD store at Marina Bay Sands in Singapore experienced a continuous flow of customers from the 23rd to the 24th, with a sales conversion rate exceeding 95%, processing 4-10 orders per hour. JP Morgan raised the target price for LAOPU GOLD from HKD 1,149 to HKD 1,249, expecting a compound annual growth rate of 68% for sales and 76% for net profit from 2025 to 2027

- Morgan Stanley analysts reported that the performance of Lao Pu Gold's Singapore Marina Bay Sands store exceeded expectations following a site visit on June 23-24.  
- The store achieved a conversion rate over 95%, with 4-10 transactions per hour, and plans to expand its presence in Southeast Asia, projecting significant sales growth through 2025-2027.  
- The target price for Lao Pu Gold was raised from 1,149 HKD to 1,249 HKD, with analysts forecasting a compound annual growth rate of 68% in sales and 76% in net profit during this period.

LAOPU GOLD goes overseas with a "successful first battle": strong customer flow, 95% are local customers, with 4-10 orders processed per hour