LAOPU GOLD (06181) surged more than 7%. As of writing, the stock was up 7.05%, trading at HKD 790, with a turnover of HKD 750 million. Daiwa released a research report stating that since its industry outlook report in late December 2025, LAOPU GOLD's share price has risen only 8%, lagging behind the 12% increase in the gold price. Based on a recent conference call with management, the company reaffirmed its target to achieve a 40% gross margin this year, although Daiwa expects the gross margin for the second half of 2025 to decline on a half-year basis.

Daiwa indicated that, assuming the gold price rises linearly by a further 10% by the end of 2026 on top of its year-to-date increase of 12%, and assuming the company commits to maintaining a gross margin above 40%, it estimates that LAOPU GOLD would need to increase its per-gram selling price by over 35% this year. CICC pointed out that early in 2026, LAOPU GOLD continued to launch new products, such as the Noon Horse series, effectively integrating traditional Chinese cultural elements with exquisite craftsmanship.

Bolstered by the company's brand strength and product capabilities, the institution projected that during the New Year period, LAOPU GOLD achieved double-digit and triple-digit year-on-year growth in domestic same-store sales and overall sales, respectively. For the full year, the institution expects that LAOPU GOLD's domestic strategy will focus primarily on store optimization in 2026, while overseas markets such as Japan and Singapore still offer room for store expansion.

Following the volatility in gold prices and changes in the operating environment during 2024-2025, the company's management capabilities have been further enhanced, accumulating more extensive experience. The institution anticipates that there is further potential for gross margin recovery in 2026.