Nomura raises LAOPU GOLD's target price to 1,171 yuan, expecting sales and profits to still have room for growth

Nomura's research report indicates that LAOPU GOLD (06181.HK) has issued a positive profit alert, expecting revenue in 2025 to be between RMB 27 billion and 28 billion, representing a year-on-year growth of 2.17 to 2.29 times; adjusted net profit is expected to be between RMB 5 billion and 5.1 billion, with a year-on-year growth of 2.33 to 2.4 times, both higher than the bank's and market expectations. Based on this, the company's revenue in the second half of last year is estimated to have grown year-on-year by 1.94 to 2.14 times, and adjusted net profit by 1.94 to 2.05 times, still on a rapid growth trajectory.

The bank believes that LAOPU GOLD's performance last year slightly exceeded expectations, mainly due to its continuous expansion of stores in high-end business districts in China, constantly optimizing and renovating existing stores to provide high-end luxury services to customers, offering more diversified products to meet VIP customer preferences, and strengthening its image as a preferred brand for pure gold and high-end jewelry. Even with two price increases in the second half of last year, demand did not decline.

The bank believes that LAOPU GOLD still has ample growth space for sales and profits in 2026, especially driven by the increased penetration rate among the company's VIC customer base in China; it has raised its revenue forecasts for 2025 to 2027 by 3% to 4%, and adjusted net profit forecasts by 2% to 3%, with the target price raised from HKD 1,160 to HKD 1,171, maintaining a "Buy" rating