Daiwa raised its year-end gold price forecast to RMB 1,290 per gram and reiterated its "Buy" rating on LAOPU GOLD

Driven by the tense situation in the Middle East and the recent rise in market expectations for gold prices, Daiwa published a research report, raising its gold price forecast for the end of this year from RMB 1,200 per gram to RMB 1,290 per gram. It reiterated a "Buy" rating on LAOPU GOLD (06181.HK), noting that the company implemented a long-anticipated price adjustment over the past weekend, with an average price increase of about 29%, in line with expectations. It currently estimates that the average gross margin of its products will reach 39.4% by 2026.

LAOPU GOLD's product price increase ranges from 20% to 30%, marking the largest single price adjustment the company has made to date. The increase for pure gold products is higher than that for diamond-set products. Daiwa believes that the company has directly passed on cost pressures to its core gold products. In fact, since LAOPU GOLD adjusted its prices last October, gold prices have risen by about 26%. Meanwhile, during the Spring Festival period, LAOPU GOLD stores still had long queues. The firm maintains its positive outlook and earnings forecast unchanged, reiterating a target price of RMB 880