Goldman Sachs has raised its 12-month price target for Hong Kong-listed Laopu Gold (6181:HK) to HK$1,090.00, up from a previous estimate of HK$976.00, while reiterating its Buy rating. The upward revision comes on the back of stronger-than-expected year-to-date sales and accelerating store expansion, signaling robust performance and long-term growth potential for the jewelry company.
According to the investment bank’s latest research note, Laopu Gold’s earnings projections for 2025 to 2027 have been revised upward by 15% to 26%, supported by impressive sales across both online and offline channels. Goldman Sachs highlighted the early success of Laopu’s new product line, which has seen high demand and favorable feedback from distribution partners.
The new series, which incorporates more colorful designs and places less emphasis on the traditional appearance of gold, has also demonstrated exceptional value retention in the secondhand market. According to Goldman Sachs, resale values for products from the new collection are holding steady at over 90% of original prices, notably higher than the market average of 85%. This performance underscores growing consumer confidence in the brand’s design innovation and craftsmanship.
The firm believes the differentiated product offering could help Laopu Gold reduce its exposure to volatile gold material prices by positioning its jewelry as premium lifestyle goods rather than pure commodity-based products. “The new series has the potential to elevate brand equity while commanding higher price premiums,” the report stated.
In addition to product innovation, Goldman Sachs sees further upside from upcoming strategic initiatives in the second half of 2025. These include enhanced Very Important Customer (VIC) management, the launch of new gold ornament collections, and continued efforts to optimize store operations. Together, these developments are expected to improve operational efficiency, strengthen customer engagement, and expand Laopu Gold’s total addressable market.
While the report acknowledges a potential near-term risk as approximately 40% of Laopu Gold’s shares are set to exit their lock-up period on June 27, Goldman Sachs views any resulting pullbacks in stock price as a buying opportunity. The firm emphasized that the company’s solid fundamentals and strategic positioning should continue to drive shareholder value in the medium to long term.
Laopu Gold, a rising force in China’s jewelry sector, has been gaining traction for its blend of heritage craftsmanship and contemporary design. The company’s strategic focus on innovation, branding, and consumer experience appears to be resonating with younger demographics and urban markets, particularly in the premium segment.
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