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2025-07-29 14:35:01
[Bank of America: Lowers Laopu Gold's Target Price to HK$958, Market Focuses on Sustainability of Earnings Growth] Bank of America Securities released a research report stating that Laopu Gold has issued a profit warning, with adjusted net profit for the first half of the year expected to be between 2.3 billion and 2.36 billion yuan, exceeding the bank's and market expectations of 2.1 billion and 2 billion yuan, respectively. The bank estimates that due to rising gold prices, the group's gross profit margin in the first half of this year will be 39%, a year-on-year decrease of 2.4 percentage points and a decrease of 2.1 percentage points from the first half of the year, but this will be partially offset by positive operating leverage. The bank expects the market to pay closer attention to the sustainability of Laopu Gold's earnings growth and projects a 26% year-on-year revenue growth next year. Combined with gross margin expansion and operating leverage, this will drive a 30% year-on-year increase in adjusted net profit. The bank also expects the company to open six new boutiques next year, with single-store sales increasing by 6% year-on-year. The bank raised its forecast for Laopu Gold's adjusted net profit for this year and next year by 11% and 6%, to 5 billion and 6.6 billion yuan respectively; it expects revenue in the second half of this year to reach 13.8 billion yuan, a year-on-year increase of 178%, and adjusted net profit is expected to reach 2.7 billion yuan, a year-on-year increase of 206%. The bank lowered the company's target price by 4% to HK$958 and reiterated its "buy" rating
