Goldman Sachs Reiterates 'Buy' Rating for LAOPU GOLD (06181) with HK$1,168 Target Price

Stock News
Mar 24

Goldman Sachs has released a research report maintaining a "Buy" rating on LAOPU GOLD (06181) with a target price of HK$1,168. This target corresponds to a projected price-to-earnings ratio of approximately 25 times for the year 2026. The report noted that LAOPU GOLD achieved a net profit of 4.868 billion yuan last year, positioning it at the mid-to-high end of its positive profit alert range. Revenue for the second half of 2025 grew by 200% year-over-year to 14.949 billion yuan, slightly below the bank's expectations. However, this was offset by a gross profit margin that exceeded expectations and lower-than-anticipated selling and administrative expenses. The bank attributes these results primarily to early inventory preparations and improved operational efficiency. The report also mentioned the company's preliminary first-quarter results for this year, which significantly surpassed market expectations. Revenue is estimated to reach between 16.5 billion and 17.5 billion yuan, representing an increase of 34% to 42% over the first half of 2025's revenue. Goldman Sachs estimates this translates to year-over-year growth of more than 100%, with net profit margins also higher than expected. The bank believes this strong performance is largely due to benefits from early stocking and operational leverage.

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