LAOPU GOLD (06181) saw its shares rise more than 4% during the trading session. At the time of writing, the stock was up 2.96%, trading at HK$596 with a turnover of HK$310 million.

Goldman Sachs issued a research report stating that LAOPU GOLD's (06181) share price has corrected by 18% since March, presenting an attractive risk-reward profile. The firm maintained its "Buy" rating on LAOPU GOLD, with a 12-month target price of HK$1,108.

The report noted that despite recent volatility in gold prices, brand momentum and the continuous acquisition of new customers should support growth. It mentioned that performance during the May Day holiday met management expectations, with gross margins currently above 45%, which is expected to provide upside 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 consumer sentiment will gradually recover if gold prices stabilize.