JP Morgan: Maintains a positive view on LAOPU GOLD (06181) this year with a "buy" rating, considering it as a top pick in the industry.

JP Morgan released a research report stating that it has extended the valuation period of LAOPU GOLD (06181) to December 2026 (originally June 2026), and maintains a target price of HK$1,296 using the discounted cash flow method, with a "buy" rating; potential short-term catalysts include: retail sales performance during the Chinese New Year in January and February, upcoming price increases, and overseas expansion. LAOPU is JP Morgan's top pick in the Chinese consumer sector. JP Morgan is more optimistic about LAOPU's performance during the Chinese New Year than the market, citing brand strength improvements, new product launches, attraction of new customers, repeat purchases from existing customers, and favorable gold price trends. The group's solid performance is expected to alleviate investor concerns about recent high base effects and gold price fluctuations affecting consumer behavior. The company's systematic development strategy (such as cautious expansion of stores, direct sales model, and differentiated service quality provided by selected/trained teams) is seen as the most beneficial for experiential growth. JP Morgan raised its profit forecast for LAOPU for 2025-2027 by 1% to 7%, expecting a 49% year-on-year profit growth this year; forecasting a 77% and 82% compound annual growth rate in sales and net profit for LAOPU from 2025 to 2027; the next price increase for LAOPU may occur around the end of February.