China's Laopu Gold falls on profit-taking despite in-line first-half earnings outlook

Laopu Gold Co

28/07/2025 06:00

** Shares of Laopu Gold 6181.HK fall 4.3% to HK$732, their lowest level since May 20

** Stock on course for a ninth straight session of decline, if losses hold

** Shares were up nearly 4% in early trade after the jeweller forecast robust first-half earnings, in line with market expectations.

** Shares shed all gains later, as investors continued to lock in profits following the stock's strong performance in recent months

** YTD, stock up 203.9%

** Laopu Gold, with a current market capitalisation of $16.2 billion, expects first-half net profit to jump 279%-288% y/y and revenue up 241%-255% y/y due to expansion of brand influence, optimization and promotion of products

** "The stock has retreated >30% from the peak due to resetting market expectation and unwinding fund flow in our view," Citi says, adding valuation looks undemanding

** Citi reiterates "buy" on the stock, citing preliminary  1H25 results largely in line with market expectation

** Nomura lifts target price to HK$1,148 from HK$1,023, cites 1H25 positive profit alert in line with market's expectation with improving net margin a positive signal

($1 = 7.8487 Hong Kong dollars)

 (Reporting by Donny Kwok)

 ((donny.kwok@thomsonreuters.com))