UBS: Lao Pu's gold first quarter guidance is higher than expected, maintaining target price at 890 Hong Kong dollars.

UBS published a research report stating that Laopu Gold provided guidance for the first quarter of this year, expecting revenue to reach 16.5 billion to 17.5 billion yuan, and net profit to reach 3.6 billion to 3.8 billion yuan, higher than expected. The bank estimates that despite a high base and a net profit margin of 21.8%, the first quarter performance guidance implies revenue and net profit growth of about 150% and over 150% year-on-year. Due to weak gold prices and concerns about potential share placements, Laopu Gold's stock price has fallen 10% so far this year, dropping 17% in the past three trading days. Given the strong performance in the first quarter of this year, the bank believes there is upside risk to the full-year profit outlook, maintaining its target price at 890 Hong Kong dollars with a "buy" rating.