The report "Big Banks" by Huayan Research initiates coverage on LAOPU GOLD with a rating of "Buy" and a target price of 973.7 yuan

HSBC Global Research released a report, initiating coverage on LAOPU GOLD (06181.HK) with a "Buy" rating, predicting a price-to-earnings ratio of 26.2 times for next year and a target price of HKD 973.7, aligning with luxury goods stocks in Western countries. The bank stated that LAOPU has the potential to become China's first domestic high-end brand that can benchmark against Western brands like Tiffany and Richemont; the company's sales are expected to grow by 8 times from 2023 to 2025, with 77% of its customers overlapping with Western luxury brands.

HSBC Research noted that LAOPU GOLD's stock price has risen nearly 800% since its initial public offering in June 2024. The company has emerged as a local luxury brand in China that can compete with Western high-end jewelry brands, forecasting that LAOPU's net profit will grow by 218% year-on-year in 2025, with revenue increasing by 199% year-on-year.

As growth normalizes, HSBC Research predicts a compound annual growth rate of 29.5% for LAOPU's net profit from 2025 to 2027, and a compound annual growth rate of 23.1% for revenue