Yamato: Predicting the year-end gold price to be 1,290 RMB per gram and reiterating a "buy" rating for LAOPU GOLD (06181).

Daiwa released a research report stating that, driven by the tense situation in the Middle East, in response to the recent market's expectation of gold price increase, the year-end gold price forecast was raised from 1,200 RMB per gram to 1,290 RMB per gram. They reiterated a "buy" rating for LAOPU GOLD (06181) with a target price of 880 Hong Kong dollars, pointing out that the company implemented a long-awaited price adjustment over the weekend, with an average price increase of about 29%, in line with expectations. It is estimated that the company's average gross profit margin for products in 2026 will reach 39.4%. The price increase for LAOPU GOLD products this time ranged between 20% and 30%, making it the largest single price adjustment the company has made so far. The increase for pure gold products was higher than that for diamond-set products. Daiwa believes that the company is directly passing on cost pressures to its core gold products. In fact, since LAOPU GOLD adjusted prices in October last year, the gold price has increased by about 26%. Meanwhile, during the Chinese New Year period, LAOPU GOLD stores still had long queues, and the bank maintains a positive view of the company and unchanged profit forecasts.