Goldman Sachs has raised its price target on Laopu Gold (6181:HK) to HK$1,090.00 from HK$976.00, reaffirming a Buy rating on the Hong Kong-listed jewelry company. The upward revision reflects stronger-than-expected sales momentum and an accelerated pace of store expansion, according to a research note issued by the investment bank.
The new price target implies a 15% to 26% upgrade in Laopu’s earnings forecasts for 2025 to 2027, driven by solid performance across both online and offline channels. Goldman Sachs cited the early success of Laopu’s new product series, which has shown encouraging signs including strong online sell-through rates, favorable channel partner feedback, and notable value retention—over 90% of original prices in the secondhand market, well above the industry average of 85%.
Goldman analysts believe the latest product line, featuring more vibrant and diversified designs that reduce the visual dominance of gold, could enhance Laopu’s brand equity. The shift allows the company to command higher price premiums while reducing sensitivity to fluctuations in gold material costs.
Looking ahead, Goldman expects Laopu to introduce further strategic initiatives in the second half of the year. These include VIP customer management enhancements, new gold ornament product launches, and continued store network optimization—all of which could support sustained growth and broaden the company’s total addressable market.
The note also flagged a potential technical event for investors: roughly 40% of Laopu Gold’s shares will exit their lock-up period on June 27. Goldman suggests that any resulting share price volatility may present an attractive buying opportunity for long-term investors.
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