Yamato: Raises target price of LAOPU GOLD (06181) to HKD 910, reiterates "buy" rating.

Daiwa released a research report stating that LAOPU GOLD (06181) had a bright spot in its full-year performance last year as it separately disclosed preliminary figures for the first quarter of this year, significantly exceeding market expectations. Based on median calculations, the first quarter revenue and net profit guidance are equivalent to 62% and 76% of the full-year revenue and net profit of last year, indicating an exceptionally strong start to the year. Daiwa has raised the group's earnings per share forecasts for the next two years by 13% to 14% to reflect stronger revenue and gross margin assumptions, with the target price raised from HK$880 to HK$910, reiterating a "buy" rating. The bank mentioned that it expects the seasonal fluctuations for Laopu in 2026 to be particularly significant this year. The first quarter benefited from a strong rise in gold prices in February 2026, while the fourth quarter is expected to be supported by year-end holidays and the large-scale launch of high-priced gold jewelry business targeting VIP and high-net-worth clients after the Mid-Autumn Festival. Although management did not provide further performance guidance, it is expected that the performance in the second quarter of 2026 will significantly slow down from the record-breaking first quarter. However, management remains confident about the company's prospects.