Daiwa: Raises revenue and net profit forecasts for old store gold this year, maintains target price at 1010 Hong Kong dollars.

Morgan Stanley released a report stating that Laopu Gold had a strong performance in the first quarter of this year, and it is expected that earnings per share in the first half of the year will double year-on-year. The stock is considered to have an attractive valuation, currently trading at a forecasted P/E ratio of 13 times in 2026, with potential upside in earnings forecasts. The management has not made any comments on the need for fundraising, but admits to tight cash flow. The bank believes that the recent sharp drop in gold prices has brought uncertainty to the market demand, but at the same time, it is a good time to test whether its brand strength can support a sustained re-evaluation. Morgan Stanley has raised revenue and net profit forecasts for Laopu by 13% to 14%, expecting annual increases of 55% and 66% respectively in 2026, reaching 42 billion RMB and 8 billion RMB. Morgan Stanley maintains a target price of 1010 Hong Kong dollars for the group, but due to gold price fluctuations and uncertain demand, it has lowered the target P/E ratio from 23 times to 20 times, with a "hold" rating.