U.S. stocks steady; Cook’s dismissal, Nvidia earnings in spotlight
Goldman Sachs raised its price target on Laopu Gold (6181:HK) stock to HK$1,090.00 from HK$976.00 while maintaining a Buy rating. The investment firm cited stronger-than-expected year-to-date sales performance both online and offline, along with faster store expansion.
The revised target reflects a 15-26% upward revision in 2025-2027 earnings estimates for the Hong Kong-listed jewelry company. Goldman Sachs noted the initial success of Laopu’s new product series, evidenced by strong online sales rates, positive channel feedback, and higher secondhand value retention at over 90% of original prices compared to the 85% average.
The investment bank views the new series as potentially elevating Laopu’s brand equity by featuring more colorful designs that de-emphasize gold’s appearance while commanding higher price premiums. This strategy could help delink the company’s products from gold material pricing.
Goldman Sachs expects additional initiatives in the second half of the year across VIC management, new product launches in gold ornaments, and store optimization to further strengthen Laopu’s brand position. These efforts could support growth sustainability and expand the company’s total addressable market.
The firm noted that approximately 40% of Laopu Gold’s shares will exit their lock-up period on June 27, suggesting that any potential stock price pullbacks following this event could present buying opportunities for investors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.