Citi: LAOPU GOLD's new round of products average price increase of 25%, exceeding expectations, expected to stabilize gross margin in the second half of the year

AASTOCKS
2025.10.27 08:01

Citigroup's report indicates that LAOPU GOLD (06181.HK) raised its product prices yesterday (26th), with the average price increase reaching 25%, higher than the bank's expectations and exceeding the 20% rise in gold prices since the price hike on August 25th.

The bank believes that LAOPU GOLD's significant price increase before the November sales peak reflects that the company has achieved ideal sales. It also expects the company's gross margin to stabilize after the price increase in the second half of the year, and based on the current gold prices, anticipates a recovery in gross margin next year.

The bank has adjusted its earnings forecasts for the company for next year and the year after, with a change of 0.5%, based on the latest gross margin predictions and rising gold costs. The bank has given LAOPU GOLD a "Buy" rating with a target price of HKD 1,119

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