Credit Suisse: LAOPU GOLD issues profit warning, rating "Buy" with a target price of 981 yuan

The research report from Jefferies pointed out that LAOPU GOLD (06181.HK) announced a positive profit alert yesterday, expecting a net profit of RMB 2.532 billion to 2.632 billion in the second half of 2025, representing a year-on-year growth of 186% to 197%; operating revenue is expected to be RMB 14.6 billion to 15.6 billion, with a year-on-year growth of 194% to 214%. Although the revenue and net profit are generally in line with the firm's expectations, the adjusted net profit exceeds the firm's and market forecasts by 10% to 15%. This is believed to be due to a gross margin in the second half of 2025 exceeding expectations and strong operational leverage.

Jefferies stated that LAOPU will hold a performance meeting on March 24, and investors are expected to focus on the latest guidance for domestic and overseas markets; management's views on gold prices and profit margin management; working capital management and shareholder returns (investors prefer to reduce fundraising activities such as rights issues over high dividend distributions); the stock is rated "Buy" with a target price of HKD 981