Recalibrating expectation

Research evidence excerpt

Recalibrating expectation

Global Markets Research

Laopu Gold 6181.HK 6181 HK 27 July 2026

EQUITY: GENERAL CONSUMER

RatingRecalibrating expectation Remains Buy

Target price2Q26 sales and profit saw meaningful y-y weakening, Remains HKD 905.00

which appears to have been largely priced in

Closing price HKD 396.40 27 July 20262Q26 sales growth decelerated significantly from 1Q26

Laopu issued a positive profit alert for 1H26: its revenue rose by 60-66% y-y to CNY19.8- Implied upside +128.3%20.5bn; adjusted net profit (excluding share-based compensation) grew by 83-85% y-y to

CNY4.3-4.4bn with net margin improving to 21-22% (vs. FY25's adjusted net margin of Market Cap (USD mn) 8,934.4

18.4%). In 2Q26, Laopu experienced a meaningful slowdown in sales momentum, with its ADT (USD mn) 67.5

quarterly revenue declining by c.30% y-y and its quarterly adjusted earnings dropping by

c.23-25% y-y, by our estimate. As discussed in our earlier note (link), Laopu's 2Q26 sales

were dragged by the sustained weakness in gold price in 1H26, as well as its product price Relative performance chart

hike at the end of February 2026. Meanwhile, we believe the sluggish sales performance

has largely been priced into Laopu's valuation; we expect Laopu's efforts to continuously

elevate its brand recognition, improve its boutiques' locations, expand its boutiques' floor

areas, focus on targeted product launches, and nurture the VIC segment will ultimately pay

off, especially should spot gold price stabilize. Laopu, in our view, remains on track to

become one of China's legitimate, high-end consumer brands, despite the weakened sales

in 2Q26. We, thus, maintain our target price of HKD905.00; reiterate Buy.

Operations improving despite volatile sales in 2Q26