More Value Waiting to Be Mined in Laopu Gold's Shares -- Market Talk

Dow Jones
04/28

0832 GMT - Laopu Gold's shares look undervalued to Morningstar, which starts coverage of the premium jewelry designer and retailer with a HK$900 fair-value estimate. The market is overlooking Laopu's revenue potential, says analyst Jeff Zhang. It maintained over 100% revenue growth in 1Q thanks to the popularity of its core products, and Morningstar sees revenue expanding at a 24% CAGR over a five-year horizon as products gain traction among wealthy China consumers and Laopu expands overseas. However, Laopu has yet to develop durable intangible assets given its relatively short track record of brand prestige and faces competition that will limit top-line growth. Still, margins should stay stable thanks to healthy price markups, while spending on boutique openings and store upgrades looks disciplined. Laopu shares ended at HK$573. (fabiana.negrinochoa@wsj.com)

 

(END) Dow Jones Newswires

April 28, 2026 04:32 ET (08:32 GMT)

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