LAOPU GOLD (06181) rose more than 4% in morning trading. As of the time of writing, the stock is up 3.14%, trading at HK$597 with a turnover of HK$210 million.

According to the latest statistics from the China Gold Association, China's gold consumption in the first quarter of 2026 reached 303.292 tons, a year-on-year increase of 4.41%. Currently, although gold jewelry consumption has declined, the first-quarter performance of many listed companies still showed a growth trend. Additionally, several brands have launched promotional activities in May.

Goldman Sachs published a research report stating that despite recent volatility in gold prices, brand momentum and the continuous acquisition of new customers should support growth. The bank noted that the performance during the May Labor Day holiday was in line with management expectations. The gross profit margin has currently reached over 45%, which is expected to provide upside potential for the net profit margin in the second quarter.

Management plans to upgrade 8 to 12 stores in mainland China this year and open 5 to 6 new stores in markets outside mainland China. Goldman Sachs anticipates that if gold prices stabilize, consumer sentiment will gradually recover.