Laopu Gold: Sales to be dragged by weak gold price

Research evidence excerpt

Laopu Gold: Sales to be dragged by weak gold price

Global Markets Research

Laopu Gold 6181.HK 6181 HK 19 July 2026

EQUITY: GENERAL CONSUMER

Sales to be dragged by weak gold price RatingRemains Buy

We remain confident in Laopu’s ability to enhance Target price

Reduced from HKD 905.00consumer perception over long term; maintain Buy HKD 1,114.00

Closing price

2Q26F sales negatively impacted by gold price decline 17 July 2026 HKD 350.00

We hosted an Investor Call with Laopu Gold (16 July) to obtain updates on the company’s

recent strategic and operational developments. According to management, the company’s Implied upside +158.6%

sales experienced headwinds from the decline in gold prices in 2Q26, which we believe

has been more or less priced in by the capital market already (see our report ). Market Cap (USD mn) 7,890.7

Management also shared that Laopu took proactive measures to stimulate consumer ADT (USD mn) 70.0

demand in 2Q26, including offering more attractive rebates/gifts, introducing new products

with affordable prices, and providing support/promotions to higher-tier clients across Relative performance chart

select shopping malls; these measures have already generated satisfactory results and

will be expanded to cover more Laopu boutiques in 2H26. We remain confident in Laopu’s

long-term growth trajectory to become one sustained high-end brand, thanks to its steady

steps for improving consumer recognition. We thus reiterate our Buy rating. We, however,

also lower our target price to HKD905.00 to factor in our lowered FY26F earnings

estimate driven by the slower-than-expected sales growth in 2Q26F (but also partially

offset by Laopu’s resilient gross margin).

Operations improving despite volatile sales in 2Q26