Daiwa has released a research report indicating that due to tensions in the Middle East and rising market expectations for gold prices, it has raised its year-end gold price forecast from 1,200 yuan per gram to 1,290 yuan per gram. The firm reiterated its "Buy" rating on LAOPU GOLD (06181) with a target price of HK$880. The report noted that the company implemented a long-anticipated price adjustment over the past weekend, with an average product price increase of about 29%, which met expectations. Current estimates suggest the company's average product gross profit margin will reach 39.4% by 2026. The price hike for LAOPU GOLD's products ranges from 20% to 30%, representing the company's largest single price adjustment to date. The increase for pure gold products was higher than that for diamond-inlaid products. Daiwa believes the company has directly passed on cost pressures to its core gold products. In fact, since LAOPU GOLD's last price adjustment in October of last year, gold prices have risen by approximately 26%. Furthermore, during the Lunar New Year period, LAOPU GOLD stores still experienced long queues. The bank maintains its positive outlook and unchanged profit forecasts for the company.