Laopu Gold Target Cut To HK$650, UBS Maintains Buy Rating

UBS cut its target price for Laopu Gold (06181.HK) to HK$650 while maintaining a “buy” rating. According to Jin10, UBS said Laopu Gold was supported by boutique upgrades, VIC services, and more frequent new product launches, and that its brand strength, channel capabilities, and product positioning were easing the impact from a pullback in gold prices. UBS said the stock had been oversold. It cited potential catalysts including first-half financial results that outperform expectations, VIC-related activities, and the opening of overseas stores in the second half of the year. UBS expected the company’s revenue and net profit in the first half of this year to rise 93% and 118% year on year, respectively. The bank’s base-case forecast was for gold prices to recover in the second half of the year. UBS added that even if gold prices remained weak, pressure on same-store sales growth could be offset by contributions from new stores. The bank made minor adjustments to its 2026 to 2028 earnings-per-share estimates by 0% to 2%. Citing a high base, slower medium-term growth, and market competition, UBS lowered its target price from HK$930 to HK$650 while keeping the “buy” rating.