JPMorgan released a research report stating that it has slightly adjusted LAOPU GOLD's (06181) 2025 earnings forecast by 2-3%, while largely maintaining its 2026-27 earnings estimates unchanged. The bank set a target price of HKD 1,296 and reiterated an "Overweight" rating, naming the stock as one of its top picks in the mainland consumer sector.

The bank expects the group to sustain its growth momentum, supported by brand value, product innovation, and a strong value proposition in a market that emphasizes national pride.

JPMorgan discussed the new value-added tax (VAT) policy on gold jewelry implemented on November 1 with the company. The new VAT policy is expected to increase raw material costs by approximately 6% and pressure the group's gross margin by 3-4 percentage points. However, management believes the actual impact on gross margin may be limited, considering inventory reserves and price adjustment mechanisms.

The bank remains optimistic about LAOPU GOLD's 2026 outlook, citing solid growth drivers such as rising average selling prices and new store expansions.