Understanding the Market | LAOPU GOLD rises over 6% as fixed-price model benefits from rising gold prices; market focuses on whether the company will raise prices subsequently

LAOPU GOLD rose over 6% again, as of the time of writing, up 6.28%, priced at HKD 804, with a transaction volume of HKD 855 million. On the news front, following LAOPU GOLD's second product price increase this year on August 25, gold prices surged rapidly before and during the National Day holiday, leading to a rise in the prices of domestic pure gold jewelry announced by several gold and jewelry brands. CITIC Securities pointed out that LAOPU GOLD's jewelry and ornaments are all sold at a fixed price model, and the continuous rapid rise in gold prices is beneficial for the company's sales and high-end brand positioning; attention will be paid to whether the company will have a third price increase plan this year due to the cost increase brought by rising gold prices. JP Morgan published a research report stating that it recently conducted several inspections and communicated with LAOPU GOLD's management, store managers, and experts, discovering a clear trend of brand value enhancement, as consumers are still willing to queue outside stores to shop even after product price increases or brand promotions end. Based on data from August to September, the bank predicts that LAOPU GOLD's retail sales performance will remain strong, anticipating that the company will launch more new products in line with the festive schedule, adopt new processes such as gold lacquer technology, and continue to adjust its store network in the future, believing that LAOPU GOLD's brand value will continue to rise