0916 GMT - Laopu Gold's free cash flow could turn around in 2026, given a likely moderation in its inventory needs, say Citi analysts in a note. They expect same-store sales to be flat next year, with no need to increase inventory for existing stores. Store growth is likely to slow to 10% from the 30% expected this year, which means inventory requirements for new stores could be lower, they add. Nonetheless, Laopu Gold still likely needs to build inventory reserves for the coming peak sales seasons, which led to its plan to raise funds via a share placement, the analysts note. Citi maintains its buy rating and HK$1,119.00 target on the stock, which ended 8.2% lower at HK$704.00. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

October 22, 2025 05:16 ET (09:16 GMT)

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